Out Fox The $treet

Interesting to see  Facebook (FB) announce reaching 1B active users today and releasing this ad. If the company got to that many users without major ad spending, why start now? Is this a sign that Facebook is starting to lose users regardless of the announcement today? Its not like I need to be reminded to use a chair. If I want to connect with somebody, I'll use Facebook or maybe just pick up my smartphone. Either way, just doesn't seem like Facebook will be the lasting service for connecting with people. Just as AOL (AOL) and MySpace were in the past, Facebook is in the process of succumbing to more interesting methods. For now, it has some possibility of keeping users via its Instagram service. Either way, should the company be worth $47B? Let me know what you think of the commercial. Disclosure: Short FB. Please review the disclaimer page for more details. 

Myspace recently launched the below video in hopes of attracting interest in its re-launch. Will the website be successful in connecting back with the younger, artistic crowd that it enjoyed until Facebook (FB) came along? Myspace appears to retain the more hip option for users disappointed with the more bland style of Facebook. The biggest hope for Myspace is reconnecting with the younger crowd looking for a place to hang out with friends and away from their parents and grandparents that now reside on Facebook. Probably a long shot to re-build a brand in the social networking world, but it sure doesn't hurt to have Justin Timberlake on your side. Whether successful or not it will undoubtedly contribute to the declining traffic at Facebook. Even 5% of users shifting time back to Myspace could just be a killer for the once dominant player. Disclosure: Short small position in FB. Please review the disclaimer page for more details.