Facebook IPO: Why Is It Worth So Much?

The Nation:

There is one thing missing in most of the hype over Facebook’s massive IPO. Everyone knows the company is popular, with 845 million users, and successful, with a potential valuation of $100 billion dollars. (That’s five times the size of Google’s 2004 debut.) But what exactly makes Facebook so valuable?

You. Its users. Or more specifically, its users’ stuff.

Read the whole story at The Nation

Comments

[sunbeltvoter]

11:30 AM on 02/21/2012

It is NOT worth that. It is a Bernie Madoff Ponzi fraud where a few like Suckerberg will get a lot of money and most will lose their money.

Why are there so many fools with money willing to hand it to Suckerberg? Just mail him a check, it is faster. You are going to lose anyway. But if you insist, more great stock tips for you to buy: MySpace and A.O.L. dialup service.

[George Costanza]

03:48 PM on 02/21/2012

When Google went IPO, it was still losing money. Think anyone who bought Google stock when it was offered is sorry they did so?

Nope. Facebook is a property rich with content and users' marketable personal information. They know who you like, what you like, what you don't like, what you're willing to buy and what convinced you to buy it.

You think that information isn't valuable?

[JV2010]

06:07 PM on 02/21/2012

LOL... not 100 billion worth of value. There revenues are a couple of billion a year. Walmart makes that in a day or two.

I know some people at Goldman Sachs, and they are desperate to sell the IPO stock Zuckerberg is selling many of his share. If it's so valuable, why is he selling it.

And why do they need money anyway? I think there revenues should cover any intended expansion.

The stock market is nothing but a Ponzi scheme designed to defraud unsophisticated investors.

[castlerider]

10:45 AM on 02/21/2012

Great article. People need to take heed.
My girlfriend had me all over the place on that stupid site. Glad I pulled most of my stuff off it years ago.

[George Costanza]

03:49 PM on 02/21/2012

You didn't. Not really. Zuckerberg still has all of it.