The $100-billion Facebook question

saksakgp said:
I just wanted to see if you would do the same kind of maths for Vodacom: market cap R135 billion, total subscribers 26 million
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Well vodacom can make R2 per megabyte from you, or R3 per minute of talking...
how much does facebook make through you per minute/megabyte of usage?

I don't think i've ever clicked on a facebook advert, and if i did, it would be something silly like 1c per click or something...
 
Have no clue, don't use facebrook or twitster. Guess that's the reason why my anti-virus never shows anything.. ?
 
killadoob said:
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.
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True, but I enable Ads on sites I frequent. With the amount of ads lately on the net one can not help but to install it.

Keeper said:
Well vodacom can make R2 per megabyte from you, or R3 per minute of talking...
how much does facebook make through you per minute/megabyte of usage?

I don't think i've ever clicked on a facebook advert, and if i did, it would be something silly like 1c per click or something...
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Not all ads are per click, some are even just per view. You dont click on ads in a news paper or next to the road yet those people still advertise, just seeing the ad is job done.

If you go look at what ads cost lately you will be surprised how much money is in it.

Hell even you can make money from online ads by just adding Google ads to your websites and you dont even have to go so far to start getting income from ads, you can just upload some YouTube video's. Example Ray William Johnson started as a Single person reviewing other YouTube clips and is now a full time celeb with full time production crew making loads of money just through ads. And that is after Google took their cut.

So yes, there is big money in ads and its not always just about physical assets.
 
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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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Everyone is forgetting the partnership with Zynga, it adds something like $400-$500 million dollars to their bottom line
 
Would you rather but 10% of Facebook which will net you a cool $100 million per year for your $10 billion or 4% of Microsoft which will net you a cool $922 per year for your $10 billion?

Enough said, FB is way overvalued. They have been focusing on increasing profit for the last year to make as much as they can on the IPO.
 
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Abe said:
Would you rather but 10% of Facebook which will net you a cool $300 million per year for your $10 billion or 4% of Microsoft which will net you a cool $922 per year for your $10 billion?

Enough said, FB is way overvalued. They have been focusing on increasing profit for the last year to make as much as they can on the IPO.
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As all investors will tell you, you spread your investment. I am not going to place all my money on the highest performer. Also there is different categories based on timescales ie: micro movement, medium and long term and you spread your portfolio to cover them all.

I agree that I think its overvalued but that value is based on the % chance that it will grow ie: investors comfort that it will yield returns. So in essence people are VERY sure it will grow.
 
Elimentals said:
As all investors will tell you, you spread your investment. I am not going to place all my money on the highest performer. Also there is different categories based on timescales ie: micro movement, medium and long term and you spread your portfolio to cover them all.

I agree that I think its overvalued but that value is based on the % chance that it will grow ie: investors comfort that it will yield returns. So in essence people are VERY sure it will grow.
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Of course but in it's present form it's more like gambling then investment. The speculation you are talking about is what you normally do with startups, not the IPO of a company. At IPO, there needs to be something behind the company that shows the growth potential, not "chance that it will grow" which is actually very low at the moment.

You should read some of the info from their IPO submission. They have 60% penetration in the US and UK markets and see this dropping rather than increasing. They are banking on growth in China which is presently blocking them. They make 80%+ of their revenue from advertising which is a really risky position to be in because any perceived loss of market share would have massive implications on their profits.

What I find really funny is that every analyst says that it's far to high but they expect people to buy it. They just aren't those people. It's like they assume that there are billions of stupid people out there who will buy Facebook shares. They are probably right but I still see the shares doing a steady nosedive from the day they are listed as the initial investors and employees look to cash in.
 
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