Facebook is building great value for consumers and brands; it's a very valuable company. Wall Street's negative analysis completely misunderstands the Facebook business model -- and to some extent, the entire nature of the social media market.
If speculators are disappointed with the performance of the Facebook IPO it is because they had ridiculous expectations of what rational investors would pay. The market has put a premium valuation on a great company and we should be happy about all of that.
All of the pre-IPO hype and post-IPO letdown completely misses the point when it comes to Facebook. Although Wall Street may see it differently, Facebook's main task is not about making a quick buck. It's about slowly and methodically building a sustainable business.
Going public and raising a boat load of cash doesn't guarantee success. As we all eagerly await Facebook's Initial Public Offering (IPO), I can't help but to think that history is going to repeat itself.
What's the $100 billion for? It's an option on Mark Zuckerberg and his 800 million Facebook friends. It's an option on whatever future monetization strategy Facebook may develop. That value may be high. It may not be unreasonable.
Facebook has been valued recently at $80 billion while Google has a current public market value of $195 billion and Apple has a market capitalization of $350 billion. Will any of these companies still be around in forty years?