Weird — I haven’t talked about Facebook in a couple months. But there was a fascinating post (and discussion) over at GigaOM today titled “Facebook — Smart or Stupid?” Did Facebook miss the boat by not selling to Yahoo! while they had the chance??

I guess I’ll throw my 2 cents into the ring by saying this: Facebook missed the boat, but not the opportunity. It seems MyBlogLog will now be at the center of Yahoo!’s social networking strategy — sorry Facebook.The difficult part of the audience Facebook (& Myspace) have attracted is that they are not in a buying mindset while engaged with the site. Users are simply entertaining themselves by browsing — any advertiser expected a decent click-through from such an audience is probably smoking something. However, those users are still valuable. Companies that want to “Brand” themselves to that young audience who will become massive consumers as they age should ABSOLUTELY be advertising there. Companies like Best Buy, Circuit City, BMW, Lexus, Home Depot should all be reaching the audiences engaged with social networks today.

Let’s face it, with millions of eyeballs viewing their site, Facebook is not out of the game. There is still time to build a sustainable business model — but Mark and his team need to get crackin. My advice is start by educating advertisers about the long term prospects of the young audience as consumers.

So the answer is YES — Facebbok stumbled, but they did not FALL.