Tue 31 Jan, 2012 11:16 pm
They will make $2 billion this year, and the IPO is hoped to value the company at $100 billion....50 times earnings. Does this make any sense to anyone? This is FACEBOOK, they have few employees, no warehouses or sales force with people actually moving product like say Amazon, and they can be replaced PDQ by someone else who comes along with a great idea and rental servers.....WTF are investors buying with their money?
I am thinking that given the history of these kinds of companies being flash in the pan that Facebook is worth AT THE VERY MOST 10 times earnings or $20 billion.
Shall we talk about MYSPACE?
What say you?
As of January 2012, Facebook has more than 800 million active users.
Release of statistics by DoubleClick showed that Facebook reached one trillion pageviews in the month of June 2011, making it the most visited Web site in the world. It should however be noted that Google and some of its selected Web sites are not counted in the DoubleClick rankings. According to the Nielsen Media Research study, released in December 2011, Facebook is the second most accessed website in the US.
Key management personnel comprise Chris Cox (VP of Product), Sheryl Sandberg (COO), and Donald E. Graham (Chairman). As of April 2011, Facebook has over 2,000 employees, and offices in 15 countries.
Most of Facebook's revenue comes from advertising. Microsoft is Facebook's exclusive partner for serving banner advertising, and therefore Facebook serves only advertisements that exist in Microsoft's advertisement inventory.
In early 2011, Facebook announced plans to move to its new headquarters, the former Sun Microsystems campus in Menlo Park, California.
A custom-built data center with substantially reduced ("38% less") power consumption compared to existing Facebook data centers opened in April 2011 in Prineville, Oregon.
Headquartered in Palo Alto, Calif. U.S. offices: Atlanta; Birmingham, Michigan; Chicago; Dallas; Detroit; New York; Venice Beach, Calif.; Washington, DC; Austin; Seattle; International offices: Dublin; Hamburg; Hong Kong; Hyderabad; London; Madrid; Milan; Paris; Selangor; Singapore; Stockholm; Sydney; Tokyo; Toronto;
Is Facebook likely to be earning me money ten years from now? Given how internet companies who dont have brick and mortar outlets have done since the beginning of the internet I would have to say "NO". Amazon might be an exception, but then Amazon has been outrageously expensive for a long time so owning it is not a sure fired great idea either.
There is no way in hell that I am paying 30-50 times earnings for a company that I have no faith will be still earning money ten years from now, and being likely to be a kick ass earner in 2015 does not change that.
What I think is hilarious about the whole thing is the social networking concept has just gone full circle from the early days of AOL and now to Facebook. Facebook is mostly just a glorified AOL with user homepages.
Facebook will be "out" soon.
The kids are already changing to Twitter - for more privacy.
I just watch what my granddaughter (age 13) is doing.
Google is earning money.
Yahoo is earning money.
AOL even announced a profit before the open of the market this morning.
So yes, internet companies with no brick and morter do earn money. Whether they are worth 100 billion is up to you hawk. I passed on the Google IPO at $100 a share. It's currently trading at $580. That's not a bad return for those that jumped on it less than 9 years ago.
Twitter isn't really a facebook alternative. It's another communication choice, like texts, phone calls, or mass emails.
Google is entering the social arena. How that will ultimately affect Facebook is yet to be seen.
You're looking at having someone or a bank put money into a restaurant. Investing in FB is a similar high-risk venture. It'll either make good bucks or it'll flame out.
Facebook reported earnings Thursday that met expectations but failed to convince investors that the social network had found a business model that would make it an enduring powerhouse.
That sobering realization was reflected in a massive sell-off of the company’s stock. After its second-quarter performance was unveiled, shares plunged 11 percent, reaching their lowest since the company’s initial public offering in May. Other companies that rely on Facebook’s platform for sales also saw their stocks fall.
Even though Facebook’s revenue grew to $1.18 billion, slightly above expectations, investors were alarmed that the company spent more than three times what it had during the same period last year yet expanded its business at a slower pace
This reminds me of the old saying " there is a sucker born every minute". The experts were claiming that Facebook is worth $100 billion and yet they dont have a business plan which works to make money.