Tuesday, May 22, 2012
Facebook or Facered face bubble ?
“Thousands of retail clients with significant losses in Facebook in the
next three months even though the IPO will be a resounding success for
the company. … This could get very ugly.”
If Facebook is valued at $100 billion, its valuation would be 33 times its advertising revenue, compared with 5.5 times for Google. To sustain its value, Facebook would need to grow its revenues by 41% percent per year for the next five years. That is very hard to do for any company, especially one of Facebook’s size. … Even a minor hiccup in the business model could lead to significant losses for purchasers.”
In March, the social network had 488 million monthly average unique users of its mobile products, out of a total of just over 900 million registered users. Facebook, Zuckerberg sued over IPO
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99% BAD HARDWARE WEEK:
If Facebook is valued at $100 billion, its valuation would be 33 times its advertising revenue, compared with 5.5 times for Google. To sustain its value, Facebook would need to grow its revenues by 41% percent per year for the next five years. That is very hard to do for any company, especially one of Facebook’s size. … Even a minor hiccup in the business model could lead to significant losses for purchasers.”
In March, the social network had 488 million monthly average unique users of its mobile products, out of a total of just over 900 million registered users. Facebook, Zuckerberg sued over IPO
___________________________
99% BAD HARDWARE WEEK:
THIS LINK posted by Joseph Bell : 2:08 PM
