********... $100 billion for a company that makes NO product

[noflyingcars]

[carranzapz]

He provided a service and people flocked to it like frogs... or something of that nature.

The P/B Ratio must be insane.

Peanut to butter ration in my sandwiches is pretty much 1:1

[lodge939]

brb communicating with old friends anywhere in the world for free. he has provided an awesome service which is made better by the fact that everyone uses it.

$100b is too much though if it only made $1billion last year, i think. but then again, who knows how it will develop and expand. look at google, they were once just a search engine and now their influence is massive and spans a wide range of sectors

[razor ramone]

Anything that is free means you are the product. This is true for ********, google search, free newspapers, TV, etc.

[rarmata]

******** is going to fail. Seriously. From a marketers point of view I can honestly tell you that their advertising platform sucks. Their $100 billion value comes from massive audience that they have built (over 700 million) which advertisers will be able to use to promote their products. The problem with ******** is that the audience, although massive, is highly limited.

Let say someone is promoting 'How To Build Muscle' book on ********. There is a limited amount of people who have liked supplement pages, bodybuilder pages and so on who would be potentially interested in the product. The fact is that people who go on ******** are in completely different mental state than those who use on Google. You use ******** to get in touch with your friends, share and view photos, but not look for products to buy and this is one of the main reasons why over the last two years there was a massive decline in click through rates in ******** ads. For a marketer advertising on Google is much more effective, because each month hundreds of thousands of new potential customers are actively looking for specific solutions to their problems, therefore advertisers can position their products in front people are looking for them.

Honestly I think ********'s IPO is going to be massive fail in the long term.

Are you aware that ******** is expanding their advertising platform to display ads off of their web properties? They are basically creating a Google Adsense competitior w/ the most advanced demographic targeting in the industry. You're also comparing ******** to a search engine and FB will probably launch some type of search platform soon. They are trying hard to innovate mobile due to their over-valued IPO and no monetization on their fastest growing space.

$0.02

[Scipio13]

******** provides a service

obvious **** is obvious

[kiddink]

OP is the definition of a pseudo-intellectual

[saugus]

its not worth 100 bil

[MakeMeHUGE]

Lol @ anybody that thinks Fbook is really worth that much, it's probably one of the most overvalued companies in the world.

Edit: Have they made it a plc yet?
They probably should before the next new thing comes along and all their stock crashes.

[ClownToucher]

*******s nobody said ******** is worthless, just that its not worth 100b.

And the fact that it doesnt have a tangible product should play into the valuation. ******** is dominant now, but its also very easily replaced compared to most companies with tangible products. Even cable tv with no products is at least entrenched and has stupid high barriers to entry. Although that business model is also slowly dying.

Anyways, ******** is overvalued and overhyped. Time will tell if ******** can continue to grow as a public company. Really hard telling what they will do. It looks like mark also has to get used to the idea of answering to a board. His billion dollar purchase of instagram without consulting anyone has already delayed the ipo.

[flairon]

I think I remember reading that in '10 FB pulled in like 5bil total, primarily from ad sales.

******** is a marketers dream and a data miners Mecca. Not only are there millions of users glued to the site every single day, they TELL you what they like and don't like and GIVE you practically every single piece of personal information you would ever need about them plus at least 1 way you know for sure to send them stuff, and likely more than that. Targeted user information is the marketer's (online and offline) holy grail, it literally is like gold in marketing and the more precise and 'pure' it is, the more its worth and I can't even imagine the mountain range levels of highly targeted info FB generates on practically a minute by minute basis

[nickt43]

I've always been interested in this, how does ******** make so much money/ worth so much since it is a free service??? I personally haven't paid any money to fb.

Is it all in advertising? god damn if it is.

[nodnarb481]

now you know how valuable (to companies) adspace and marketing is.. which is odd to me because I have never in my life bought a product based on a stupid ad on the side of my screen. Even further, I avoid products that bother me with pop ups and what not. who is falling for this crap?

[KeRiZmA]

The dude is a genius who went to Harvard. He provides a FREE SERVICE for people who sign up on ******** and makes money off of the advertisments. OP is a *******. If I had the chance to make a billion dollar company like this I wouldn't hesitate for a second and neither would you. Negged.

[Xuaxace]

I am shocked that they even increased the IPO range today and even finished the road shows 2 days early.


I thought that institutional investors were doubtful about the advertisement growth, but seems like zukkka has been able to sweet talk them into believeing they will tap into mobile users.

Utter overvaluated horse****. Any retail investor to invest in them is not very bright, all the institutions will make the buck @ IPO and retails will pay wayyyy too much inmediately after. Who knows what valuatations we might get at the closing bell.

I've always been interested in this, how does ******** make so much money/ worth so much since it is a free service??? I personally haven't paid any money to fb.

Is it all in advertising? god damn if it is.

It is advertisement, but not much. at its valuation Price earnings is above 100 times. ******** would be worth 100billion due its "potential growth opportunities" not how much the value of the company would be with its current financial numbers.

The exceptics like me, doubt that ******** will be able to capitalize on customers to that extent, hence why a 100b is just plain ridiculous and overpriced.

[nickt43]

so true.

[Slash_]

I deleted my FB

Since I did I keep getting emails from Zuckerberg telling me to come back so he can make more $

he won't stop texting me either. I get at least 2-3 texts from him a day asking me to reactivate my acc

[Hobiebrah]

Agree with OP. Sure it has its good uses, connecting with old friends, stuff like that, but I also see FB as a fading fad after awhile.

[duece49]

Can you imagine the possiblities of cross referencing all the data that they have collected on the human population.

If they buy up a few other companies that deal with purchase decisions, they cant literally identify the most effective marketing strategies of all time.

They can potentially analyze every movement online with demographics and other factors and they will be able to sell anything because they will figure out why we buy what we buy better than anyone ever has before. This is literally one of the most important companies for the future, there wil be so much research and advancement based on the data that they now own.


Cliffs- OP is a *******

[microsuede]

Just heard on the radio that GM just announced it is no longer advertising on ********, saying they think it has not been effective. I search google for a news article but nothing came up. Can anybody find a source on this?

Edit: Found a WSJ article that was put up a hour ago.

"General Motors Co. GM -0.97% plans to stop advertising on ******** after the company's marketing executives determined their paid ads had little impact on consumers, people familiar with the matter said, a move that comes as more companies question the effectiveness of advertising on the social networking site.

The largest U.S. auto maker will continue to expand its use of marketing through ********'s pages, in which markers can display content at no cost, these people said"

http://online.wsj.com/article/SB1000...017764460.html

[JKLOL]

Yup. this is why Google > FB

[xenowhat]

Anyone that's mad about this is just jealous and mad they didn't think of it first. If you have a good idea for a service/product people will usually flock to it. Welcome to Web 2.0.

[gun6slinger9]

Going to short after initial surge up on first few days

[FatWhiteKid]

If I could even care about anything, I definitely would think ******** sucks dick. I use it to keep in touch with my friends, mostly.

[shoelaces]

For a billionaire he has a very homely girlfriend.

[lsiberian]

1 billion profit is worth 20 billion max. Still they did innovate and the product is amazing. 1 Billion is still a very good profit in 2011. 1 percent cash on cash is the same as a bank account. Better off leaving your money in the bank.

[MyronBulk]

Op

you're a retard

[fat2fit21]

A great way to keep in touch with people, Marketing, making connections, free promotion etc.

Its a great site.

[jamespoe1]

since everyone here knows a thing or two about the interwebz. realize one thing

AOL-dead
hotmail-dead
myspace-dead
********-dying
twitter-the center of attention for the moment, will die

they are fads. last i heard in the trading world, its dangerous to invest in fads

[17back6]

i wish fbook were never invented.

not even just ******** but i resent how connected we all are now.