Facebook valued at $95bn
- Thread starter King.
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I'm still not sure what to think of Facebook. I mean, it's everywhere, it can't be ignored. When people are signing into Yahoo, MySpace, Pinterest, Spotify, etc. with their FACEBOOK Id, it's almost impossible for Facebook to disappear.
I do think $85 billion is wayy overvalued, but it's still possible that they are worth that much.
Facebook could go one of two ways:
Best case (for the company, not us):
-Turn the internet into an enclosed ecosystem like AOL was able to do. Every external site they link to will be I-Framed into facebook so you are never leaving their platform
-Integrate their own search by partnering up with Bing plus using their own social factors that Google doesn't have access to in order to create a more "Social Search"
-Facebook uses it's user data to create an alternative to Adsense that has highly targeted ads for individual users (huge revenue potential)
-Facebook builds its own browser, or creates it's own mobile operating system which makes them even more ubiquitous
-Facebook teams up with the government and uses Facebook as a "User Verification System" for all activities performed online.
-Facebook builds it's own payment processing system to compete with Paypal (huge revenue potential)
Worst Case:
-Everyone gets tired of the clunky and laggy "Timeline update" that they are implementing and look for other solutions
-The early adopters all embrace a hip new social networking platformed marketed as a place where "Your parents aren't hanging out at." It achieves rapid scale and is able to give people a better user experience than Facebook
-Facebook sees a decline in it's user base and comes nowhere close to it's valuation
I do think $85 billion is wayy overvalued, but it's still possible that they are worth that much.
Facebook could go one of two ways:
Best case (for the company, not us):
-Turn the internet into an enclosed ecosystem like AOL was able to do. Every external site they link to will be I-Framed into facebook so you are never leaving their platform
-Integrate their own search by partnering up with Bing plus using their own social factors that Google doesn't have access to in order to create a more "Social Search"
-Facebook uses it's user data to create an alternative to Adsense that has highly targeted ads for individual users (huge revenue potential)
-Facebook builds its own browser, or creates it's own mobile operating system which makes them even more ubiquitous
-Facebook teams up with the government and uses Facebook as a "User Verification System" for all activities performed online.
-Facebook builds it's own payment processing system to compete with Paypal (huge revenue potential)
Worst Case:
-Everyone gets tired of the clunky and laggy "Timeline update" that they are implementing and look for other solutions
-The early adopters all embrace a hip new social networking platformed marketed as a place where "Your parents aren't hanging out at." It achieves rapid scale and is able to give people a better user experience than Facebook
-Facebook sees a decline in it's user base and comes nowhere close to it's valuation
FB only made $200m last quarter, so let's be generous, and say $1bn/year profit. Yeah, definitely worth $95bn. Not overvalued at all.
Sounds like the IRS is getting a good chunk of the IPO money anyway.
Sounds like the IRS is getting a good chunk of the IPO money anyway.
I bet it was a 0.001% drop
-http://news.yahoo.com/facebook-track-public-may-18-wsj-235647082.html
That's a 12% dip from the quarter of 2011 compared to 2012 q1, not 0.001%. Granted their expenses of operation have almost doubled from last year so that can explain some of the loss. They need to be steadily increasing net income to satisfy such an astronomical valuation, not steadying out or reporting less year over year net incomes. I think this should bring some big changes for fb advertising though, as investors post ipo will soon get tired of "user experience" trumping money making, fuckerberg's mantra thus far.
All of these are already happening in my opinion. I'm hoping Path holds it grounds and can steal a huge chunk of FB's user base.
The only people who will make money in the IPO are the initial investors in Facebook, that is it. Once they go public the main priority will be to the shareholders and earning profit. Once Zuck has to think profit before user experience his mind will explode. I truely believe this is why they have been pushing off the IPO, they know it will be the end of Facebook as we know it.
First (about 9 months ago) it was $50B, absurd. Then $80B (a few months ago), absurder. Now $96B, absurdest.
Why didn't they just cut the bullshit and come up with a $99.5 Billion valuation?
Every last dollar without anyone having to question whether it's a $100 billion company or not.
Facebook IPO: Just Don't - MarketTicker Forums
Why didn't they just cut the bullshit and come up with a $99.5 Billion valuation?
Every last dollar without anyone having to question whether it's a $100 billion company or not.
Facebook IPO: Just Don't - MarketTicker Forums
Sure it's probably overvalued, but think about what facebook actually has and what their user base is worth.
They have like 500 million active people. Probably had close to 1 billion people sign up there.
They have your information, they know a lot of shit about you and your interests. They have information that a lot of companies wish they could have about their customers.
How much do you think your average facebook user is worth overall in the lifetime of facebook? I'd say each user is easily worth $100 over the lifetime of facebook. And if each user is worth at least $100 the valuation is a little bit easier to understand.
You guys are only looking at their profits. You are missing the biggest asset facebook has and that's having a shit ton of information on you and a billion other people.
They have like 500 million active people. Probably had close to 1 billion people sign up there.
They have your information, they know a lot of shit about you and your interests. They have information that a lot of companies wish they could have about their customers.
How much do you think your average facebook user is worth overall in the lifetime of facebook? I'd say each user is easily worth $100 over the lifetime of facebook. And if each user is worth at least $100 the valuation is a little bit easier to understand.
You guys are only looking at their profits. You are missing the biggest asset facebook has and that's having a shit ton of information on you and a billion other people.
This came from fidelity today, if your a player you can get in and ride that first wave of price craziness.
Name of issuer
Facebook, Inc.
Industry
Technology - Software
Security type
Common Stock
Expected size of offering
337,415,352 Shares
Expected price range
$28.00 to $35.00
Offering type
Initial Public Offering
Distribution by
The Issuer and Selling Shareholders
Expected pricing date
05/17/2012
Indication of Interest Period
05/07/2012 to 05/15/2012 by (4pm EST)
*Eligibility: Eligibility for participation in traditional IPOs led by Kohlberg Kravis Roberts & Co. (KKR) is reserved for brokerage customers with a minimum of $100,000 in certain assets at Fidelity. Other providers of traditional IPOs, and other equity public offerings made through Fidelity may be reserved for brokerage customers with a minimum of $100,000 or $500,000 in certain assets at Fidelity. Auction OpenIPOs and Secondary offerings made available through Fidelity are reserved for brokerage customers with a minimum of $100,000 in certain assets held at Fidelity. Members of Premium Services or customers who have placed 36 or more stock, fixed income, or option trades in a rolling 12-month period are eligible for either traditional or auction based offerings.
Name of issuer
Facebook, Inc.
Industry
Technology - Software
Security type
Common Stock
Expected size of offering
337,415,352 Shares
Expected price range
$28.00 to $35.00
Offering type
Initial Public Offering
Distribution by
The Issuer and Selling Shareholders
Expected pricing date
05/17/2012
Indication of Interest Period
05/07/2012 to 05/15/2012 by (4pm EST)
*Eligibility: Eligibility for participation in traditional IPOs led by Kohlberg Kravis Roberts & Co. (KKR) is reserved for brokerage customers with a minimum of $100,000 in certain assets at Fidelity. Other providers of traditional IPOs, and other equity public offerings made through Fidelity may be reserved for brokerage customers with a minimum of $100,000 or $500,000 in certain assets at Fidelity. Auction OpenIPOs and Secondary offerings made available through Fidelity are reserved for brokerage customers with a minimum of $100,000 in certain assets held at Fidelity. Members of Premium Services or customers who have placed 36 or more stock, fixed income, or option trades in a rolling 12-month period are eligible for either traditional or auction based offerings.
(O_o)
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Exactly. Everyone is always going on about list building, it being where the real value in a site lies, and no other company in the history of the world has amassed a list like theirs!
In other news, Apple is poised to become the first trillion dollar company in the world. Also overvalued?