Ephemeral Returns: Social Network Valuations and Perceived Privacy

Oliver Browne; Philip O'Reilly; Mark Hutchinson

Ephemeral Returns: Social Network Valuations and Perceived Privacy

Cork University Business School

Research output: Chapter in Book/Report/Conference proceedings › Conference proceeding › peer-review

Abstract

This paper investigates the valuations of social media platforms (SMPs) in light of the recent initial public offering (IPO) of Snapchat. Innovative platforms with unproven business models and non-voting shares commanding relatively high valuations at IPO stage as well as a shift in investor profile towards personal rather than institutional investors have eerie connotations with the tech bubble of 2000. We posit that investors value a passive audience for SMPs rather than an active user community and apply potentially unrealistic customer lifetime values and expected user growth in a highly competitive market. We also posit that investors overestimate willingness to participate, the potential success in the adoption of paid services and do not account fully for perceived or real privacy features.

Original language	English
Title of host publication	ICIS 2017
Subtitle of host publication	Transforming Society with Digital Innovation
Publisher	Association for Information Systems
ISBN (Print)	9780996683159
Publication status	Published - 2018
Event	38th International Conference on Information Systems: Transforming Society with Digital Innovation, ICIS 2017 - Seoul, Korea, Republic of Duration: 10 Dec 2017 → 13 Dec 2017

Publication series

Name	ICIS 2017: Transforming Society with Digital Innovation

Conference

Conference	38th International Conference on Information Systems: Transforming Society with Digital Innovation, ICIS 2017
Country/Territory	Korea, Republic of
City	Seoul
Period	10/12/17 → 13/12/17

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 16 Peace, Justice and Strong Institutions

Keywords

Community Engagement
Firm Valuation
Initial Public Offering
Privacy/Information Privacy
Willingness to Participate

Cite this

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title = "Ephemeral Returns: Social Network Valuations and Perceived Privacy",

abstract = "This paper investigates the valuations of social media platforms (SMPs) in light of the recent initial public offering (IPO) of Snapchat. Innovative platforms with unproven business models and non-voting shares commanding relatively high valuations at IPO stage as well as a shift in investor profile towards personal rather than institutional investors have eerie connotations with the tech bubble of 2000. We posit that investors value a passive audience for SMPs rather than an active user community and apply potentially unrealistic customer lifetime values and expected user growth in a highly competitive market. We also posit that investors overestimate willingness to participate, the potential success in the adoption of paid services and do not account fully for perceived or real privacy features.",

keywords = "Community Engagement, Firm Valuation, Initial Public Offering, Privacy/Information Privacy, Willingness to Participate",

author = "Oliver Browne and Philip O'Reilly and Mark Hutchinson",

year = "2018",

language = "English",

isbn = "9780996683159",

series = "ICIS 2017: Transforming Society with Digital Innovation",

publisher = "Association for Information Systems",

booktitle = "ICIS 2017",

address = "United States",

note = "38th International Conference on Information Systems: Transforming Society with Digital Innovation, ICIS 2017 ; Conference date: 10-12-2017 Through 13-12-2017",

}

Browne, O , O'Reilly, P & Hutchinson, M 2018, Ephemeral Returns: Social Network Valuations and Perceived Privacy. in ICIS 2017: Transforming Society with Digital Innovation. ICIS 2017: Transforming Society with Digital Innovation, Association for Information Systems, 38th International Conference on Information Systems: Transforming Society with Digital Innovation, ICIS 2017, Seoul, Korea, Republic of, 10/12/17.

Ephemeral Returns: Social Network Valuations and Perceived Privacy. / Browne, Oliver ; O'Reilly, Philip ; Hutchinson, Mark.
ICIS 2017: Transforming Society with Digital Innovation. Association for Information Systems, 2018. (ICIS 2017: Transforming Society with Digital Innovation).

Research output: Chapter in Book/Report/Conference proceedings › Conference proceeding › peer-review

TY - GEN

T1 - Ephemeral Returns

T2 - 38th International Conference on Information Systems: Transforming Society with Digital Innovation, ICIS 2017

AU - Browne, Oliver

AU - O'Reilly, Philip

AU - Hutchinson, Mark

PY - 2018

Y1 - 2018

N2 - This paper investigates the valuations of social media platforms (SMPs) in light of the recent initial public offering (IPO) of Snapchat. Innovative platforms with unproven business models and non-voting shares commanding relatively high valuations at IPO stage as well as a shift in investor profile towards personal rather than institutional investors have eerie connotations with the tech bubble of 2000. We posit that investors value a passive audience for SMPs rather than an active user community and apply potentially unrealistic customer lifetime values and expected user growth in a highly competitive market. We also posit that investors overestimate willingness to participate, the potential success in the adoption of paid services and do not account fully for perceived or real privacy features.

AB - This paper investigates the valuations of social media platforms (SMPs) in light of the recent initial public offering (IPO) of Snapchat. Innovative platforms with unproven business models and non-voting shares commanding relatively high valuations at IPO stage as well as a shift in investor profile towards personal rather than institutional investors have eerie connotations with the tech bubble of 2000. We posit that investors value a passive audience for SMPs rather than an active user community and apply potentially unrealistic customer lifetime values and expected user growth in a highly competitive market. We also posit that investors overestimate willingness to participate, the potential success in the adoption of paid services and do not account fully for perceived or real privacy features.

KW - Community Engagement

KW - Firm Valuation

KW - Initial Public Offering

KW - Privacy/Information Privacy

KW - Willingness to Participate

UR - https://www.scopus.com/pages/publications/85126504426

M3 - Conference proceeding

AN - SCOPUS:85126504426

SN - 9780996683159

T3 - ICIS 2017: Transforming Society with Digital Innovation

BT - ICIS 2017

PB - Association for Information Systems

Y2 - 10 December 2017 through 13 December 2017

ER -

Ephemeral Returns: Social Network Valuations and Perceived Privacy

Abstract

Publication series

Conference

UN SDGs

Keywords

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Cite this