Facebook was begun in 2003.
In 2011 it had gross revenue (not profits) of $3.7 Billion.
In 2010 it had gross revenue of $2.1 Biilion
I estimate the $104 Billion is 10 times it's total gross revenue over it's lifetime, maybe 100 times it's gross profit.
There are no hard assets, it is almost all Good Will. When that Good Will turns to Bad Will it will have nothing.
In my opinion you will get better return buying Solyndra or Light-Squared stock.
Paul in PA
There is a sucker born everyday. However, I did read that FB has over 60,000 servers around the world and is virtually Anonymous attack proof.
IMHO, when these types of companies go public, it is too late for the outsider to invest for a good profit.
Anybody remember the dot com boom a few years ago (how exactly were those companies worth that much)? How about the various housing bubbles we have all seen over the years (houses on my street selling for just under 200k?!? REALLY?)
Some are of the opinion that products are worth whatever others will pay for them..... (and I will add) until they aren't.
Could it be argued that "products" such as facebook actually do have some hard assets such as a whole lot of computer hardware, servers, desks, chairs, office supplies? The online presence is just the income producing side?
It's not. Wait a few weeks and you will be able to pick up all you want for a third of the IPO price.
Or their stock could be like Google, originally selling for around $60 per share and now worth well over $600. While their revenue and incomes are not the greatest now, with 800 million users, that is a large audience to target and have influence over. Just because you can't see the hard assets doesn't mean it won't have a positive return in the world of Wall Street's money.
Brad
Advertising!
Isn't there like 90 million users now? and don't forget the blackmail angle, with all that personal information they are storing on everyone.
I'm sure they sell their analytic trending data for big money.
Say what you want about Facebook,
but they just sold my spec house for me and didn't even ask for a commission.
Its not...
but the perception of it is. So often we forget that the stock market deals with perception, not real value...
>...it is too late for the outsider to invest for a good profit.
Get your terminology right, the Wall Street pet name for the retail investor is "the dumb money".
For example, while today is Facebook's initial public offering, it's previously been sold and traded in private stock offerings among institutional investors and hedge funds. Retail investors may make money or lose money based on purchases today, but the shares they are buying might be the ones that were purchased at half the IPO price by Goldman Sachs 18 months ago. When prices rise it's because the smart money is selling to the dumb money.
How Is Facebook Worth $104 Billion = 901 million users
Over 900 million users world wide.
3000+ employees.
Ad bases advertising system that caters to users activity and preferences.
There worth is priceless as long as its sell-able.
I imagine their stock value with ride up and down today but in the end they have many "dumb money" folks clamoring to ride that roller coaster. Just like Google, it will be a ride that will not stop for a long time.
:good: :good:
Advertising!
According to a story on NPR today that is not the case. Sure, they sell data, but the "value" is in the user base. The problem is that they really haven't figured out the best way to tap it yet. Possibly look in the future for tiered user fees.
[sarcasm]I'm investing in MYSPACE instead.[/sarcasm]
It's not worth $104 billion. It is all imaginary.
Every time I see a breathless story about the Facebook IPO I want to go barf.
Data mining is huge now. Everything you do is being watched and mined for data. Smartphone users are being followed everywhere they go.
Big brother is giant corporations getting gianter.
:good:
:good:
Data mining
We're not far from this video with data mining.
Data mining
I have found Facebook very useful for posting "Where is my daughter?"
Ir doesn't take long for her to show up at my house.
Just like Albert Pujols is worth the $250 mil the Angels got him for - you certainly don't get what ya pay for o.O
The photos of people's half eaten restaurant meal (usually the plate nearly fills the screen) are gross, in my opinion.
