The main reason I’m following all the attention facebook is getting is because I’m fascinated at what will be the outcome of social media. I think the final outcome of facebook will set a precedent. So far there are too many predictions and there’s not enough evidence. I have my own opinions, but I’m not going to share.

Let’s just say I’m not investing any of my own money in facebook stock right now (well, maybe just a little, because I couldn’t resist).

What worries me is I remember the late 90’s – early 2000’s, when all the Internet stocks that were supposed to bust wide open all tanked. I know too many people who lost too much money back then. It changed their lives to the point where some were never able to recover. Trust me, I knew more than a few who were going to become instant millionaires with their “dot coms.” The problem was they didn’t know what the hell they were doing.

What bothers me is that I have this feeling a lot of people don’t know…or understand…the magnitude of facebook and social media. All they know is what they read, hear, and see from the mainstream media…which is lame at best. I didn’t put up that old man in the photo above by accident. And I didn’t mean it as a slur to facebook.

Here’s an article from CNET about the latest happenings with facebook.

Facebook’s shareholders can’t catch a break.

The company’s stock today is trading down to $29.44, shedding $2.46, or about 8 percent, of its market-opening price. The decline comes the same day trading on Facebook was opened to the options market. According to Dow Jones, about 162,000 Facebook options were traded by 9 a.m. PT this morning.

Facebook’s continuing decline has struck fear among investors, who wonder how low the company’s shares might fall. Facebook went off earlier this month at $38, only to watch its stock plummet in subsequent days. At its current price, Facebook shares are down more than 23 percent since the IPO.

It’s worth reading the entire article, in full. There are some very interesting links.