The concept of Web 2.0 started off with a bang. All the great tech minds and internet fans were really excited about the concept taking off. Not to sound like it hasn’t, because it definitely has. Web 2.0 concepts have taken off in so many ways that it’s almost unbelievable. Ten years ago, there was basically no Web 2.0. Now, almost every website integrates user experience and user-generated content in one way or another. But not all is good in the Web 2.0 world.
The latest news from this week is not exactly great for the big Web 2.0 companies. Forbes is claiming that “the great social networking phenomenon is coming apart at the seams.” While we don’t think that’s entirely true, there is some disturbing news coming out.
Five of the biggest Web 2.0 companies have reported bad news when it comes to share prices. They are Groupon, Angie’s List, Kayak, Yelp, and Facebook. Forbes claims that “the Web 2.0 stocks are crumbling at what appears to be a rapidly accelerating pace, bruised by a combination of disappointing performance, cautious analysts and a flood of new stock from expiring lock-up expirations.” It’s a bit complicated. Basically, it’s not good news for them.
But is it a sign that Web 2.0 has failed? We don’t think so. The concepts and beliefs that drove (and still drive!) the Web 2.0 movement have spread all over the internet. However, these poor results could be a sign that Web 2.0 isn’t necessarily the next big money-maker on the web.
We think the ideals and beliefs behind the Web 2.0 movement are here to stay. Social media, user-generated content and interactive websites continue to grow. The direction the web is headed—because of the concepts of Web 2.0—is a better direction for the consumer and the user. Ultimately, whatever is good for the consumer and user is good for business. They just need to learn how to adapt.