What Does The Future Hold For Facebook?

It's finally here. One of the most talked-about companies of the past decade makes one of the most talked-about IPOs in history on Friday, as Facebook finally friends Wall Street. (We're sick of the puns too.)

The chatter, from both supporters and critics, has been endless, but when it involves a company that nearly 1/8 of the human race uses, it just may be justified. Is Facebook's estimated $100 billion valuation just the beginning for the meteoric company or the sign of another doomed tech bubble? Is Mark Zuckerberg, the hoodie-clad so-called "brat tycoon," the model for a 21st century CEO or a cocky kid about to get in way over his head?

No one really knows. Not yet, at least. And that's what makes it so much fun to discuss.

"Like" him or not, there's no denying that Zuckerberg represents one of the most fascinating entrepreneurial stories in modern history. His journey has taken him from a Harvard dorm room to Wall Street boardrooms, and the 28-year-old who stands to make more than $19 billion this week got there by taking a relatively simple concept, refining it and growing it into a global phenomenon. He's changed the way close to a billion people communicate and connect. And he had plenty of opportunity to cash out long ago, but stayed the proverbial course, and remains intent on going public his way.

For many entrepreneurs, an IPO means the ultimate payday. For others, staying private means staying in control. Zuckerberg seems to want both. And for now, with a 57 percent stake in the company he built, he just may get it.

Where does Facebook go from here? We decided to ask some of our friends -- our Board of Directors.

Phil Town

Investor and Author of Rule #1 and Payback Time
"Rebelman"

"I try to buy wonderful businesses, and I try to buy them on sale. Figuring out what the future holds for Facebook is crucial to knowing how much to pay for a piece of it. You can find the value of a business by adding up the cash the business will earn for the next 20 years. But since you're not going to get the money right away, it's not worth 100 percent. A dollar today is worth a lot more than a dollar you might get in 20 years. The problem with Facebook is that it's such a new business model that no one has any idea what cash the business will earn in the next 20 years. And that's the problem with buying it now -- I don't know what it's worth.

"Is it a wonderful business? It certainly is an exciting, world-altering revolutionary business. That's pretty wonderful. But wonderful also means it's going to be around for 20 years, that it is durable, which means it has some sort of defendable niche that can keep competition at bay. I have no idea what 'social networking' will be doing in 20 years.  

"Since no one knows what Facebook will be making in the next five years, much less the next 20 -- or even if it will be around then -- it's impossible to know what the actual value is. If you don't know what it's worth, buying it is just pure speculation. For Facebook, I'm out."

Bob Parsons

Founder and Executive Chairman, The Go Daddy Group
"The Renegade"

"I know many critics are questioning Facebook for its advertising model, its privacy issues and so on, but I will say this -- from what I can tell, Mark Zuckerberg, although he is going to do very well, is not in it for the money. I think that bodes very well for the future of Facebook."

Clint Greenleaf

Founder and CEO, Greenleaf Book Group
"The Cowboy"

"Facebook looks like a great stock today. MySpace was the top social platform just a few years ago and now it's a joke. It's crazy to assume that in this modern world a company like Facebook could be a good long-term hold. If you're in it just for a quick day-trading play, have at it, but I'd stay away if you're looking for a long-term investment."

Tate Chalk

Founder and CEO, Nfinity
"The Matador"

"In the short term, mounds of cash. In the medium term, lots of adjusting the business model to outside forces, like trying to raise stakeholder value. In the long term, exactly where it is today -- unless someone can figure out how to truly monetize social media."

Warren Brown

Founder, CakeLove and Love Cafe
"Cake Daddy"

"Facebook is going to reap in loads of cash. Following the stimulus that comes from the newly minted zillionaires will be a good study for the future. Maybe it'll balance out the fallout from Greece and Spain?"

Lawrence Gelburd

Lecturer, The Wharton School
"The Rock 'n' Roll Professor"

"Facebook will be very successful -- as long as management continues to take the big risks."

Comments

[Terri Skau]

08:42 PM on 06/08/2013

Well I cannot stand Facebook and suspended my account over a year and half ago and have written too them several times to close it permanently and still to this day they haven't..I do hope that his company fails...and I'm telling many to bet against the stock and the company...;-))

[Daniel Kauwe]

04:38 AM on 11/25/2012

i'd like to see Facebook replaced by something that is functionally equivalent but fundamentally regulated and moderated by the users...an exercise in direct democracy if you will.

[Rosie Addison]

11:02 PM on 06/08/2012

It's good to see caution where there's so much hype.

[Daniel Ch2 v33]

10:36 PM on 05/18/2012

The Co-Founders abandonment of his US Citizenship was the nail in the coffin. Greed can be blinding to the truth.

[WilliamWalton]

09:32 AM on 05/18/2012

BREAKING NEWS: MITT ROMNEY JUST BOUGHT FACEBOOK AND CLOSED IT DOWN!

[Daniel Kauwe]

04:39 AM on 11/25/2012

oh no! has he no heart?

first Big Bird, then Facebook, where next will he strike?

[Caperton Miller]

06:59 AM on 05/18/2012

Okay, I was trying to keep it under wraps, but here it is. My competition for facebook that will make all the investors think twice. My new social network idea:

ERASEBOOK (copyright ©2012, CBMiller Inc., all rights reserved)

You start off with 7 billion friends. Everyone on earth. But it's not social networking, it's a game. The first one to piss off everyone and end up with zero friends wins! It's the ANTI-social networking site! The OPPOSITE of facebook! Total privacy. No wall, no timeline. Only 7 billion friends just waiting and wanting for you to UNfriend them. It gives people who sit in front of computers most of the day, (myself included) what they really want. Total, alone time! And the advertising and monetizing opportunities are endless! Without all those friends you'll have nothing to do but click on banner ads and shop. Heaven!!!

It's not online yet but any new facebook millionaires, you know where to find me.

[cloudmaker]

05:45 AM on 05/18/2012

I loved the old days when things were rated by what value they were to our lives, not how much they cost.

[Xzavier2008]

02:31 AM on 05/18/2012

Never used FB never will and us common folk will never be able to get our hands on it, I'll bet good 'ole ETCHA SCETCH MITT will be right there first in line

[rugbymom]

12:46 PM on 06/02/2012

Only if his beancounters tell him there's a way to strip out its value, keep it for himself and the other private equity guys, then lay off half the workers and sell the carcass for gazillions of dollars. (That model is more suited to aging companies than start-ups.)

[Mailman]

12:51 AM on 05/18/2012

Alot of money for Zuckerberg.

[repugnicansfearme]

08:25 PM on 05/17/2012

Two words, I hope I hope I hope I hope I hope
1) Competition
2) Humility