Loading ...While Facebook’s IPO has raised a lot of excitement in the tech space, it has also raised some questions. WebProNews has already reported on the impact of the IPO on users and marketers, but what about from a business standpoint?
Francis Gaskins, the President of IPODesktop.com, told us that, even though Facebook’s IPO has a lot of potential, its estimated valuation of $75-100 billion is not reasonable. As he explained, when you look at the past 4-5 quarter results, Facebook’s earnings were flat.
What’s more is the fact that Facebook didn’t really have a competitor during that time. Now, however, with Google+ on the scene and growing at a rapid rate, Gaskins believes that the company’s forecast could be off.
According to him, Facebook should have gone public last summer, which would have made it the first of its kind.
Do you think Facebook should be valued at $100 billion? Why or why not?
Well, I guess he is right. it does seem far fetched
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This is an excellent article. You get my vote and I’ll bookmark this weblog right now. you should check my videos.
During the course of our research in the redesign of the UZAP social online marketplace (doing a full overhaul mandated by the new Google above the fold algorithm changes) one thing was very surprising – many key Google adwords “keyword combinations” are now up around $50+ per click and Google derives 97% of it revenue from Adwords with total revenue of $37+ Billion to Facebooks $3.9 Billion.
Now consider that Facebook has a higher percentage of the “Display Advertising” market than does Google.
Been out on the town lately every 20/30 something has a smart phone and half the time they are out and about they are “sweeping” their FB wall and info for what their friends are sending them about what they are up to – more popular for hookup connections than a dating site – why – no dating site stigma!
How long do you think it will take for Facebook to optimize SO MO LO or social mobile and local advertising (FB not serving mobile ads at the moment) with highly targeted ads for who you are and what you are doing where you are now? At $50 CPC??? Considering the world wide advertising Market is over $700 Billion and Facebook leads social – what is the real upside for laser focused SO MO LO advertising? When 80% of the world accesses the internet via mobile devices by 2015 what will facebook be worth when they are generating $39 Billion in revenues instead of $3.9 Billion – do the math! No wonder Google invented Google+!
Well as he said they haven’t monetized mobile yet, they have to start monetizing and see what happens.
It’s not the valuation of the company I’m worried about, it’s when companies go public and instead of making steady profits they feel forced to increase revenues to please shareholders. Just look at what going public did for Google. Google is all about profits and their stock price and when they started as a company they were only about making the best search engine in the world.
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