Yesterday Facebook and Zynga’s stock got hammered as Facebook’s advertising efficacy was again questioned, while Zynga faces accusations that executives sold shares while hiding evidence of the company's weakness. (Oh shit… What a surprise!) Facebook was hit with a double whammy, as both a client and an analyst published doubts about the company's display-advertising business, which accounts for almost 90 percent of the Menlo Park company's revenues. Limited Run, a New York-based startup, dramatically closed its Facebook page Monday with a long rant that said it had discovered 80 percent of the clicks on its Facebook display ads were from "bots," or automated programs. Limited Run went so far as to call Facebook "scumbags.” Ouch, take that ZuckerNozzle. Meantime, Zynga is being sued for failing to disclose a rapid decline in users and revenue. And, let’s not even think about Groupon. It’s dot.com dejavue, all over again!
Ya got that right Yogi!
