> A billion-dollar investment does not buy much influence in a site expected to be worth a hundred times that when it goes public.
Really? Facebook is going to be worth a hundred billion dollars?
Really? Facebook is going to be worth a hundred billion dollars?
Adding 10s of billions of implied market cap a quarter. The bubble knows no bounds. Interesting product, interesting stock. Regardless, does anyone else think this is going to go down as the biggest tech stock blunder in history? Can anything from 2000 touch this? It's madness, and infinitely intriguing.
I remember it grew a few tens of billions basically overnight with bit tech sites claiming "..and Facebook's value grew another $5 billion this week".
I think its value will start dropping fast by the end of the year, especially now with Google+ gaining traction.
People should really compare Facebook to Google. Google post-IPO was valued at a "bubbly" 27 billion in 2004. And take note that at that time Google already proved it had a viable business model; but people were still freaking out because Google only had one product, compared to what Microsoft or Yahoo had.
Are you going to tell me that Facebook is worth three times as much as Google did in 2004?
The better comparison is to Google today, which is worth $171B. Is Facebook worth 2/3 as much as Google? It certainly could be, since if it assaults Google head-on in an ad network, given certain other assumptions it could capture a huge market position.
The exact same line of thinking that you are using would allow you to say "Here's a source that puts Myspace above Facebook (Alexa rankings from 2008), and most likely had higher ad revenue at that time. MySpace just sold for $35m so how can you say Facebook is worth even $100m?"
Valuations of tech companies is largely based on future projections and the future projections of Groupon has shifted in the past 6 months just as significantly as MySpace did in the last 3 years.