[criley2]

Facebook has a lot of business moats, but when it comes to the fleeting attention of the youth, and trends, there is no way to moat that. The second you moat a generation's trend, the next generation declares you old and busted and will do anything but use you.

Which is probably why Buffet doesn't invest in fads and social media: http://www.fool.com/investing/general/2014/01/27/why-warren-...

[IgorPartola]

I actually think this is awesome. This means a few motivated individuals can put together a niche social network and have a guaranteed buyout from Facebook. Basically, if you get big enough, they have to buy you.

I think the only option they really have is to spin off new social networks to cater to new generations and become just a holdings company for them. Sort of a YC of social networking. Their main advantage would be the ready source of funding vs a random college student thinking up the next Whatsapp or Instagram.