Sooo facebook is planning on a $100 billion valuation, which means it has doubled from Goldman's valuation of $50b made a few months ago.
All of WSO and most of the media are pointing out the possible bubble, but social media companies are still getting insane valuations
Who are the supposedly smart people that will buy into this kind of valuation?
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The 2 B in estimated 2011 earnings and the level of growth on a quarter over quarter and month over month basis makes it a pretty legit 50X multiple. Given Renren and Linkedin, Facebook seems like a fairly solid IPO despite the 12 figure valuation.
http://blogs.wsj.com/deals/2011/06/13/what-we-know-about-the-facebook-i…
Read that.
I call BS. From a fundamental standpoint do they really see the "company" lasting another 7 years? MySpace is quietly taking the plunge and I wouldn't be surprised if NC drops them in the near future. Once Twitter begins implementing a business model that incorporates real advertising, Fb will take a huge hit. But of course, the cycle of social networking sites is like a mobius strip. On another note, I think King Abdullah could have driven the price up when he offered $150B a few months ago.
In my opinion Facebook can only be valued at $100B if it developes itself beyond the boundaries of a social networking site. They're already stretching the privacy thing, so I wonder how much more they can increase their revenues from 'targeted advertising'. Having said that, I must confess I'm not fully aware of all the value drivers in Facebook's business.
But if Facebook would get a significant part of the Chinese/Asian market..who knows. Zuckerberg is already kissing some Chinese asses...
hahaha this is ridiculous. looking only at market caps, this is saying facebook > nike + general motors + heinz. Really?
Facebook is bound to fail, I've heard google is in development of a social network of its own, it will be integrated into all of their other services, gmail, youtube, google maps etc etc etc. Look for it 4q 2012
Ask yourself one question, does facebook produce anything?
Answer: No
Glencore should be valued at 100 Bil NOT Facebook. When will people realize this? Ahh thats okay I will just continue to trade off these lemmings.
anybody else notice themselves spending less time on facebook? I sure do
I sure do. Know quite a few people who deactivated their FB as well. More users means nothing is people are spending less time on FB....
I deleted mine like a year ago. Don't miss it at all
Speaking to the TOS (time on site) point, it's going up. You can find the data here: http://www.alexa.com/siteinfo/facebook.com
Under Traffic Stats > Time On Site
Unfortunately the data only goes back a year, but it demonstrates a pretty steady level (with about +10 minutes TOS than this time last date last year).
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