Facebook Financials and Stats (S1 just released)
- Thread starter r3p1v
- Start date
Although entirely speculative, this infographic has some interesting points.
TLDR:
Facebook will tip the 1 billion users point sometime in August.
Facebook will account for 1/6th of the entire display ad spend in the US by year's end and will account for 28% of the ads seen online, overtaking and nearly doubling Google's ad revenues.
TLDR:
Facebook will tip the 1 billion users point sometime in August.
Facebook will account for 1/6th of the entire display ad spend in the US by year's end and will account for 28% of the ads seen online, overtaking and nearly doubling Google's ad revenues.
this is the reason they're IPOing according to Zuckerburg.
If you read his IPO letter he talks about having an obligation to satisfy early investors. I think at the same time you could look at it as they either want to grow more rapidly, or they think they've peaked and just looking for some $$
Here's the letter:
The Facebook IPO: Zuckerberg's letter to investors
No need for the douchebag attitude.
I'm trying to figure out why Facebook is IPO'ing, motive is important.
The company value is subjective. RIM had a "company value" of 80 billion in 2008 and has a current "company value" of 8.8 billion. It's speculation.
The IPO value and profit numbers are actual recorded numbers that I can look at.
I found it very interesting that Facebook is IPO'ing at 5 billion when they made 1 billion in 2011. It's revenue and profit is continuing to grow at a significant rate. At this rate, Facebook will net over 5 billion in total profit by 2014.
Are they IPO'ing so early investors can cash out? Investors are in the game to maximize return, so them wanting to cash out of makes me wonder if this is the companies peak.
Maybe the investors are only cashing out portions of their shares, to hedge their bet on Facebook?
Bam. That's exactly what I was trying to figure out. When they are netting a billion a year, it doesn't make sense to me why they would IPO for 5 billion dollars.
That was my point, and you answered it. Thanks., because now it definitely doesn't look like a good idea to pick up some stocks.
BTW, did yall hear that Zynga makes up 12% of Facebooks revenue? That's insane.
Hah. Shows how much I've been reading the news or following this.
Either way, add a few zeros to my post, whatever.
Facebook is worth more than anything, ever.
...if that database is protected and slowly but surely used properly and sensibly (but profitably).
People WILLINGLY give it marketing information, and it's on "autopilot" in that regard.
I'm not saying I'll invest in it. Eventually the corporation will get too greedy and too evil, like Google, and lose favor with the public over some yet unnamed service.
I'm just saying, they have more personal information than God in that fucker, and that's why it's worth near-infinity.
That $5B is just a placeholder to get in the game. They can change the amount. Likely just being on the conservative side so they figure out the true demand for the shares before increasing it.
Again, there has been VC money that has been locked up for over 7 years now. Their entire business strategy is to exit with a homerun. Doesn't mean they will dump everything but they need a liquid market to sell when/if they want to take profits. Yes, there is a private market but it's not large enough for real volume.
It's really to early to know whether this will be a good buy or not. If they can keep the revenue chart growing like below, then it's a steal.
^^ This.
Falian, market value is what is more important (though you do still need to watch amount of shares issued)
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Market value is hugely speculative, especially in a young tech company like Facebook. Once again, I reference RIM. It had a 80 billion market value in 2008, and currently have a 8.8 billion market value. It's a perfect example of how quick the market value for a tech company can crash.
I'm not going to purchase a stock based on it's market value, I'd much rather look at the financial statements and the company objectives and evaluate the worth of said company on my own. If I think the company is worth more than the market value, then I buy, if not, then I sell.
Having said that, I do get your point about looking at Market Value instead of IPO Value. However, I was looking at IPO Value to try to figure out why Facebook is going public, as that insight helps.
I know one thing for sure. Wall street is attracted to growth. Earnings, & future earnings.
Realistically speaking, growth would come from the user base or members. But if everyone has a FB account, then this growth is peaked.
More advertising? Maybe. But FB is not an advertising company.
The data is worth billions, but again this valuation is peaked out in my opinion. Growth come in acquiring new data.
I'm greatly generalizing here.
It's a pump & dump. The pre-IPO buyers of FB stock have to make their money first, then the stock will tank.
-g
Realistically speaking, growth would come from the user base or members. But if everyone has a FB account, then this growth is peaked.
More advertising? Maybe. But FB is not an advertising company.
The data is worth billions, but again this valuation is peaked out in my opinion. Growth come in acquiring new data.
I'm greatly generalizing here.
It's a pump & dump. The pre-IPO buyers of FB stock have to make their money first, then the stock will tank.
-g