The $100-billion Facebook question

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The $100-billion Facebook question

Just over a year ago I asked whether Facebook was really worth $50-billion. On Thursday I got my answer: No, it’s worth more like $100-billion. After years of flirting with the market, Facebook has finally opened its kimono and started the process of offering its shares for public trading.
 
If in such a short time they are worth so much , how much will they be worth in 20 years?
 
buyeye said:
If in such a short time they are worth so much , how much will they be worth in 20 years?
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Probably 1/4, the company is way overpriced as the article points out. Currently internet startups going IPO are getting a lot of attention as everyone wants the next google to make them billionaires overnight, therefore they are willing to pay premium for the risk. Facebook might have agressive growth and increased market penetration, but ask Vodacom and MTN about how difficult it is to continue market penetration.

To continue at this rate Facebook will need to innovate and come up with a new product or service based on or leveraging its current offerings.
 
I dunno about that, i wonder what kind of advertising facebook generates, with 500 million users and growing it must be worth billions.
 
killadoob said:
I dunno about that, i wonder what kind of advertising facebook generates, with 500 million users and growing it must be worth billions.
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I have Ad-Block installed. Never really seen an advert on Facebook.

No sane investor should invest in this nonsense. This is yet another tech bubble waiting to burst. Also, remember what happened to MySpace? Facebook is likely to follow when something better comes up.

Facebook has no real tangible assets - its value is based on the information users give them. However, with more people becoming aware of their privacy online, they're likely to give away far less information.
 
Myspace is nothing like facebook. Facebook is very different to myspace.

It's basically your life online with all your friends and family. Twitter and facebook are here to stay for a very long time.

You may have adblocker installed but facebook 500-600 million people to target, i doubt all of them have ad block. I know my shyte on a computer and i don't block ads because feel sites like MYBB never the support and i don't find ads intrusive at all.

I have inquired about facebook advertising and it is about 1k a month.
 
phiber said:
To continue at this rate Facebook will need to innovate and come up with a new product or service based on or leveraging its current offerings.
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To continue at this rate Facebook should be trying to get more people onto the Internet, like via a Facebook smartphone with BIS style Internet connection just for connecting to Facebook, make it cheap enough and attempt to get the other 6 billion people online.
 
Facebook is so boring these days... Hardly go in anymore... What about other users?
 
They made $3.7 billion revenue which means that they are not a mickey mouse business. I just havn't seen how they make that money.
 
killadoob said:
I dunno about that, i wonder what kind of advertising facebook generates, with 500 million users and growing it must be worth billions.
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well if it's supposedly worth $ 100 Billion and they have 500 million users, that means they make $200 on each person.

Somehow I fail to see how they will make R1600 out of every facebook user on the planet (on average) through advertising...
 
Usually when a company offers shares in a public market, they are looking for funding for something big, not so? Or trying to minimise risk for current shareholders if it fails?
 
Keeper said:
well if it's supposedly worth $ 100 Billion and they have 500 million users, that means they make $200 on each person.

Somehow I fail to see how they will make R1600 out of every facebook user on the planet (on average) through advertising...
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Vodacom is worth R135 billion
 
saksakgp said:
They made $3.7 billion revenue which means that they are not a mickey mouse business. I just havn't seen how they make that money.
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Targeted advertising. They know more about people than anyone else, perhaps even google.
 
saksakgp said:
They made $3.7 billion revenue which means that they are not a mickey mouse business. I just havn't seen how they make that money.
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$3.7 billion revenue vs $100 billion market cap

Doesn't make sense.
 
I use Facebook far less now than I did 3 months ago.
 
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