Mark Zuckerberg: Billionare

Status
Not open for further replies.
Adam

Adam

HowDroll said:
Especially if one of my friends has given it the thumbs-up. The endorsements of acquaintances hold at least some level of value to most people.
Click to expand...
None of which came from data mining and none of which are particularly unique to Facebook. Shego's 'unknown' online store is more valuable from a marketer's perspective, but no more worth the dollars spent on it than the ad I see at the bottom of the Halforums page that says "Baby Girl Photos Share Your Mom & Baby Photos Like The Johnson's Baby Page Today".

All this is tangential to me real problem which I'm kinda glossing over. I don't think Facebook is worth anywhere near $100B.
 
HowDroll

HowDroll

Adam said:
All this is tangential to me real problem which I'm kinda glossing over. I don't think Facebook is worth anywhere near $100B.
Click to expand...
At its current state? It's honestly hard to say. With the rapid (exponential, even) expansion of technology, I'm not sure that anyone knows right now how much targeted internet advertising or data mining is "worth." If Facebook doesn't continue to grow and innovate -- or if they commit one significant mis-step on user privacy, or if the government steps in to regulate what can be collected -- they may not be worth the $100 billion of their IPO. But when Amazon launched its IPO in 1997, who could have foreseen that what basically amounted to an online bookseller would end up (probably) putting companies like Best Buy out of business, not to mention becoming a major player in e-book/tablet hardware?

I don't know a lot about investing. I'm not sure what Facebook is really "worth" in terms of incomprehensible numbers like $100 billion. I do, however, see firsthand on a daily basis how it influences the lives of its users -- especially users in my age group -- and I really believe that's worth an almost offensive amount of capital.
 
Adam

Adam

HowDroll said:
At its current state? It's honestly hard to say. With the rapid (exponential, even) expansion of technology, I'm not sure that anyone knows right now how much targeted internet advertising or data mining is "worth." If Facebook doesn't continue to grow and innovate -- or if they commit one significant mis-step on user privacy, or if the government steps in to regulate what can be collected -- they may not be worth the $100 billion of their IPO. But when Amazon launched its IPO in 1997, who could have foreseen that what basically amounted to an online bookseller would end up (probably) putting companies like Best Buy out of business, not to mention becoming a major player in e-book/tablet hardware?

I don't know a lot about investing. I'm not sure what Facebook is really "worth" in terms of incomprehensible numbers like $100 billion. I do, however, see firsthand on a daily basis how it influences the lives of its users -- especially users in my age group -- and I really believe that's worth an almost offensive amount of capital.
Click to expand...
Amazon's IPO was $54 million. And that was for a company with physical distribution centers, inventory, etc.
Google's IPO was $1.67 billion.

Facebook has 845 million users in a world of only 2,267,233,742 (give or take one or two) internet connected people. The offensive amount of capital raised is going to be used to buy other companies. Like AOL which influenced the lives of its users tremendously did.
 
@Li3n

@Li3n

Adam said:
All this is tangential to me real problem which I'm kinda glossing over. I don't think Facebook is worth anywhere near $100B.
Click to expand...
Hey, you know that talk Varys had with Tyrion about power? Yeah, the economy kinda works the same way...
 
Adam

Adam

Of course it doesn't really matter what you're talking about because the market has spoken in a very loud, very clear voice agreeing with me.
 
Necronic

Necronic

Staff member
He's saying that value is perception, which is true to a degree.

The problem is that it turns out that nobody percieved Facebook to be worth what the IPO called for. I don't think I heard a single positive analysis of the FB IPO before it launched. I think everyone expected it to tank after the banks stopped holding the prices up.
 
Tress

Tress

Necronic said:
He's saying that value is perception, which is true to a degree.

The problem is that it turns out that nobody percieved Facebook to be worth what the IPO called for. I don't think I heard a single positive analysis of the FB IPO before it launched. I think everyone expected it to tank after the banks stopped holding the prices up.
Click to expand...
I heard really excited, positive evaluations of the FB IPO before it launched. I just didn't hear it from people who knew what they were talking about. The media hyped this up big time, and I think at least some people bought into that. That's the only reason it didn't nosedive right away (well, that and Morgan Stanley was trying to keep it afloat that first week single-handedly). Then people came to realize that the analysts, the ones who do this sort of thing for a living, knew what they were talking about in regards to FB's value.
 
Necronic

Necronic

Staff member
I DID hear it hyped before the change in the price, but when they shifted to the 38$ mark I only heard people saying bwahh? really? Saying that the company was legitimately valued at 100 BILLION dollars was just crazy. That put it in the range of major manufacturing firms like Ford or General Electric. And compare that to other software/tech firms like Activision Blizzard, which sits at 18 bil. And then consider that they really only have A SINGLE PRODUCT (advertising/datamining).

It just made no sense whatsoever. Apparetnly Zuckerberg also lost about 5 bil in this IPO, and if I was him I would consider suing his advisors in this. Whoever set that 38$ price should definitely be laughed out of the business.
 
Status
Not open for further replies.
Top