0

Facebook Value Makes No Sense

Wednesday, February 1st, 2012

Facebook ad sales worldwide  grew 104% in 2011 but are expected to climb just 52% to $5.8 billion this year and only 21% to $7 billion next year, according to eMarket.

Current profits less than $1 billion

Current Revenues $3.7 billion – $500 million directly from Zynga who runs some games that can be ported to any other platform ( estimates are that the numbers are more due to ads round the games)

Current Valuation $100 billion

Google Plus now a strategic product for Google and growing massively

So a business that is slowing it’s growth and now has a big competitor is valued on a 100/1 ratio

Looks like herd mentallity for investing will be back

 

Popularity: 2% [?]


Leave a Reply

How do I change my avatar?

Go to gravatar.com and upload your preferred avatar.