Technical analysis can simply be referred to as the study of charts. Like in the financial markets, things tend to trend over time--like growth patterns. MySpace has been trending upwards since 2005. Unsurprisingly, this is no longer the case.

Using several tools like Alexa, Google Trends, Compete, and common sense, I have seen that Facebook has been on a similar path that MySpace has taken in past years. One thing that is different is that Facebook has a much more significant growth pattern. It would not be a crazy idea to believe that Facebook will continue to trend upwards and experience more growth.

MySpace on the other hand, is in a slump. It has broken a nearly three year growth pattern! Facebook's popularity is having a dramatic impact on the growth of MySpace. I know that many of you reading this are likely to have, or have had a MySpace profile. Just a year ago I would have been the recipient of a "WTF" type moment if I told one of my friends that I did not have MySpace account; now I am questioning why I still do have the account open. Maybe some other people are feeling the same way.

If the technical analysis will be correct, and if there is no serious problem with Facebook's future regarding their legal issues, then Facebook could very easily take over the top spot in social networks by the second quarter of 2008. I am not going to flat-out say that this will happen, but it is a significant possibility--if I was betting on the situation, I'd be all-in on Facebook taking the lead. Regardless, it certainly should be no shock to anyone if this is the case.

A message to MySpace:

Dear Tom,

Are you ever going to take steps to actually improve MySpace? You could start by not having my friend's accounts being hijacked and as a result my receiving of spam messages on a daily basis. Also, you could try reducing the amount of obtrusive advertisements; they really annoy me, it is no wonder why people feel the need to use AdBlock Plus. It is such a shame to see one of the most popular social networks being wasted away by News Corp. What is the deal?

Your not top 8 friend,

James Mowery