Is Facebook really worth $100 billion?

  • SB
  • Moderator
  • Genius
  • User avatar
  • Posts: 8745
  • Loc: Aberdeen, Scotland

Post 3+ Months Ago

Today Facebook launched on the stock market with shares valueing the company at $104 billion. People have been asking for weeks whether the company really is worth that amount of money, what with the limited revenue streams.

What do you all think?

I'm personally starting to wonder how much worse the site can get in terms of pushing advertising on me. It's certainly not the site i signed up to 5 years ago and for months i've lost alot of interest in it.
  • Poly
  • Guru
  • Guru
  • User avatar
  • Posts: 1091
  • Loc: Same place you left me.

Post 3+ Months Ago

Facebook is going to start pushing ads in the form of posts from your "friends". So on your news wall your going to start seeing stuff like:

John Smith
Just checked out Ozzu! Everybody should make an account and check it out!
Like · Comment · Share · 30 minutes ago.


Seems like its already over kill, and once they add that in they will pretty much be shooting themselves in the foot. Google +'s layout is far more appealing than Facebooks, and they don't use ad's, as of right now. Hopefully once they add the new ads people will realize G+ is the place to be.
  • SB
  • Moderator
  • Genius
  • User avatar
  • Posts: 8745
  • Loc: Aberdeen, Scotland

Post 3+ Months Ago

I'd love to use G+ more but unfortunately not everyone has caught onto the idea of it yet. Like you say, i hope people realise this they will move over to G+.
  • Bogey
  • Genius
  • Genius
  • Bogey
  • Posts: 8416
  • Loc: USA

Post 3+ Months Ago

It may worth $104 billion now but I don't see that happening for much longer. Once G+ gets popular (Like SB mentioned) and other forms of online interaction between two or more people, Facebook would start falling, just like MySpace has (in my opinion). Nothing lasts for ever and I think this may be Facebook's peak. But that's only my opinion.

Only way to keep a site like that keep it's worth is to drastically change it almost every year (in terms of functionality and the mission of the site) to keep it synchronized with the people's desires of online interactivity. It seems like Facebook is doing a pretty good job of it (or at least trying) with their purchase of InstaGram for $1 billion and their constant redesigning of their site.

Who knows... maybe I'm wrong and they will keep their worth even though Google+ came out.
  • SB
  • Moderator
  • Genius
  • User avatar
  • Posts: 8745
  • Loc: Aberdeen, Scotland

Post 3+ Months Ago

The problem with such a high valuation is there is even more pressure on them to improve on that... but there are not many companies that have such a high value and many of those who are as valuable have much more revenue streams.

The thing that is going for Facebook is the advertisements and the gaming platform, but even that is starting to falter a bit due to some of their biggest clients (most notably Zynga) looking to focus their attention on their own gaming platform. It won't surprise me if (and when) Zynga successfully market their own platform then they likely won't be so reliant on Facebook, especially if user participation on Facebook slows down a bit which i fully expect.
  • Bigwebmaster
  • Site Admin
  • Site Admin
  • User avatar
  • Posts: 9101
  • Loc: Seattle, WA & Phoenix, AZ

Post 3+ Months Ago

I saw a few tweets from people who mentioned that their teenagers don't use Facebook because they say that is what old people do. Not sure if that viewpoint is common among younger people, but thought that was interesting.
  • SB
  • Moderator
  • Genius
  • User avatar
  • Posts: 8745
  • Loc: Aberdeen, Scotland

Post 3+ Months Ago

Bigwebmaster wrote:
because they say that is what old people do.


I'm not that old... :x
  • Breeze
  • Photographer
  • Guru
  • User avatar
  • Posts: 1029
  • Loc: Australia

Post 3+ Months Ago

Bigwebmaster wrote:
I saw a few tweets from people who mentioned that their teenagers don't use Facebook because they say that is what old people do. Not sure if that viewpoint is common among younger people, but thought that was interesting.


That's what I've heard, too. I'm still young-ish in comparison at 22, but I've heard of the even younger ones using Instagram and Twitter heavily instead. Of course, Instagram is now owned by Facebook.

I would think the valuation is not so much potential revenue, but the sheer amount of personal data that Facebook possesses. Imagine how valuable that would be to advertisers.

As for Google+, I'm not sold on it yet. The best thing about it is Hangouts - that is seriously one cool app.
  • SB
  • Moderator
  • Genius
  • User avatar
  • Posts: 8745
  • Loc: Aberdeen, Scotland

Post 3+ Months Ago

I can't say i am overly surprised with this, but shares have dropped to around $33 now. Down $5 from what they were when Facebook first launched on the market on Friday.

http://www.bbc.co.uk/news/business-18141990

Those who did buy shares though will probably do well to keep a hold of them yet, they will climb well above $38 for a brief period then i imagine it to linger around that mark for a few months before declining... unless Facebook manages to pull something out of the bag.

I agree with your comment about the value of the data Breeze. It reminded me of something i read about Facebook recently on how they managed to market their adverts going by the information you provide. The example i heard/read was if you changed your status to getting married and your female you'll see more bridal type adverts on the page, if you added to your timeline the details of a new born baby then you'd likely see more baby clothe/accessories adverts. This is a great way for Facebook to sell the adverts to the people wanting adverts as you're guaranteed to receive your target audience rather than a bunch of people that may or may not be interested in your adverts.
  • WritingBadCode
  • Graduate
  • Graduate
  • User avatar
  • Posts: 214
  • Loc: Sweden

Post 3+ Months Ago

I don't know what its worth, but investors has put in a lot of money in it from what I understand and the site has many users (returning users unlike those at G+). There seems to be no competition to talk about.

That got to be worth something. $100 billion is a lot tho but, maybe? The company still got a lot of growing potential. And if they have some new cool stuff soon to come, hey that could make it worth more than that!
  • Poly
  • Guru
  • Guru
  • User avatar
  • Posts: 1091
  • Loc: Same place you left me.

Post 3+ Months Ago

Facebook is tanking hard right now. First day they were at $104b, as of this post they're worth $68.4b. Zuckerberg is already out over $2.5b personally. Guess we'll see how far it slides.
  • SB
  • Moderator
  • Genius
  • User avatar
  • Posts: 8745
  • Loc: Aberdeen, Scotland

Post 3+ Months Ago

I wonder how many people immediately sold their shares last Friday when becoming millionaires/billionaires. I know had i been one of the fortunate people to be in that position i would have... that's not just me saying that now i have the benefit of hindsight.
  • Poly
  • Guru
  • Guru
  • User avatar
  • Posts: 1091
  • Loc: Same place you left me.

Post 3+ Months Ago

If I had been an investor in FB, I would have been trying to sell prior to it going public. I think pretty much all the investors smelled the tank from a mile away and wanted out. It doesn't come as a surprise to me at all. Bad revenue stream, angry 'customers', and alternative and better products available with other companies, what did they think was going to happen.
  • spork
  • Brewmaster
  • Silver Member
  • User avatar
  • Posts: 6254
  • Loc: Seattle, WA

Post 3+ Months Ago

poly wrote:
If I had been an investor in FB, I would have been trying to sell prior to it going public. I think pretty much all the investors smelled the tank from a mile away and wanted out. It doesn't come as a surprise to me at all. Bad revenue stream, angry 'customers', and alternative and better products available with other companies, what did they think was going to happen.

Yes. This.
  • Zealous
  • Guru
  • Guru
  • User avatar
  • Posts: 1244
  • Loc: Sydney

Post 3+ Months Ago

Bigwebmaster wrote:
"that is what old people do"


i am sure they will get suckered in too. But really if it was not for the wonderful RSS feeds across soo many web sites giving updates i would of gave up a while ago on it. The site is handy but it is just wayy too social. Over social.

I have had more *plum* arguments on facebook then anywhere else, We need a Chuck Norris Facebook app. So when someone is being a troll we can open up the app to have Chuck jump through the internet and slap them in the face.

The next best thing for the internet is turning off facebook and talking to people again.
  • SB
  • Moderator
  • Genius
  • User avatar
  • Posts: 8745
  • Loc: Aberdeen, Scotland

Post 3+ Months Ago

Dropped to a new low today. Now sitting $10 less than it listed at a week and a half ago.
  • Poly
  • Guru
  • Guru
  • User avatar
  • Posts: 1091
  • Loc: Same place you left me.

Post 3+ Months Ago

Still around $28 right now. Not surprised in the least. I'm wondering just how low its going to hit. Wonder how much Zuckerberg has lost now, if he lost 2.5b the opening day...
  • SB
  • Moderator
  • Genius
  • User avatar
  • Posts: 8745
  • Loc: Aberdeen, Scotland

Post 3+ Months Ago

I heard he cashed in his shares after a couple of days when the price started to drop, so i don't think he would have lost as much.

Not related to Facebook, but i heard about a friends friend that bought shares in the Royal Bank of Scotland when they were bailed out by UK government a couple of years ago and were selling at just £0.51 per share. Despite the fact the bank is still taxpayer owned, the share price of the bank has climbed significantly and is currently sitting at about £20.00 per share. Not a bad investment if you bought quite a few shares when they dropped all the way down to less than £1 per share.

So, even though the Facebook share price appears to be dropping, i do think that it will climb... especially if the rumours of a Facebook phone being made are true. I personally think the phone will be naff, but news of the phones release will most definitely improve the price...albeit not likely enough to climb above the original $38 share price.
  • KimberlyNK2_
  • Newbie
  • Newbie
  • User avatar
  • Posts: 12

Post 3+ Months Ago

I personally think the evaluation of Facebook is quite lofty, I just hope it won’t turn bad for the end users in the end.
  • grinch2171
  • Moderator
  • Genius
  • User avatar
  • Posts: 6810
  • Loc: Martinsburg, WV

Post 3+ Months Ago

SB wrote:
So, even though the Facebook share price appears to be dropping, i do think that it will climb... especially if the rumours of a Facebook phone being made are true. I personally think the phone will be naff, but news of the phones release will most definitely improve the price...albeit not likely enough to climb above the original $38 share price.


I honestly don't think them developing a phone will do anything for them. What will a Facebook phone bring to the table that Apple and Google haven't done already. It would be a novelty item at most.
  • SB
  • Moderator
  • Genius
  • User avatar
  • Posts: 8745
  • Loc: Aberdeen, Scotland

Post 3+ Months Ago

It will open up other areas of income. Should they go along the app route, which they'd be silly not to, then they would increase income from that. No doubt they would try and integrate advertisement into it somehow as well.

It's a novelty item, but it allows more room for them to explore other areas of income. I would be surprised if the share price didn't climb over $38 within a year or two of this phone being on the market.
  • Poly
  • Guru
  • Guru
  • User avatar
  • Posts: 1091
  • Loc: Same place you left me.

Post 3+ Months Ago

It would be a novelty for most people, but remember how many stupid people there are in this world. I have been told before that the iPhone doesn't do Facebook because Facebook isn't an Apple product... There would always be those types of people that would buy it. Other than that, I don't see why anybody else would get it, unless Facebook would discontinue the Android, Windows, Blackberry and iOS versions of their app, and allow it only on their phones(which would hurt them more than it would help them).
  • SB
  • Moderator
  • Genius
  • User avatar
  • Posts: 8745
  • Loc: Aberdeen, Scotland

Post 3+ Months Ago

http://www.dailymail.co.uk/sciencetech/ ... feeds.html

Despite this announcement price still sits at $29. :lol:

I find the whole situation very amusing.
  • Poly
  • Guru
  • Guru
  • User avatar
  • Posts: 1091
  • Loc: Same place you left me.

Post 3+ Months Ago

Even this doesn't entirely sum up just how much fail was in this article. And idea.

Image
  • musik
  • Legend
  • Super Moderator
  • User avatar
  • Posts: 6893
  • Loc: up a tree

Post 3+ Months Ago

Poly wrote:
Facebook is going to start pushing ads in the form of posts from your "friends". So on your news wall your going to start seeing stuff like:

John Smith
Just checked out Ozzu! Everybody should make an account and check it out!
Like · Comment · Share · 30 minutes ago.


Seems like its already over kill, and once they add that in they will pretty much be shooting themselves in the foot. Google +'s layout is far more appealing than Facebooks, and they don't use ad's, as of right now. Hopefully once they add the new ads people will realize G+ is the place to be.


I saw a good article in the NY Times about the adverts and FB using your Likes and statuses as their adverts, was very interesting... http://www.nytimes.com/2012/06/01/techn ... .html?_r=1


I retweeted this the other day cuz it just made me laugh "Google+ is like the gym. Everyone is a member, hardly anyone goes."

I like the idea of Google+ but I can't find anyone much I know using it, well enough for me to keep up with three social networking sites anyway (G+, FB & Twitter)
  • SB
  • Moderator
  • Genius
  • User avatar
  • Posts: 8745
  • Loc: Aberdeen, Scotland

Post 3+ Months Ago

musik wrote:
(G+, FB & Twitter)


If the three you mentioned, Twitter is the one i use most. I never thought that would ever happen as i was very reluctant to use the site when people started talking about it.
  • musik
  • Legend
  • Super Moderator
  • User avatar
  • Posts: 6893
  • Loc: up a tree

Post 3+ Months Ago

I prefer FB for connecting with people I am close with. I cut down my list to just pretty much my immediate circle of people I see in real life. Twitter I use to keep up with information on stuff I'm interested in and occasionally to put my opinion out there or share some random info that might be of use to someone. Most of my followers and fellow WordPress addicts so I try my best not to clog it up with random guff ;) Whats your Twitter name?
  • WritingBadCode
  • Graduate
  • Graduate
  • User avatar
  • Posts: 214
  • Loc: Sweden

Post 3+ Months Ago

musik wrote:
I like the idea of Google+



What is it with the "idea" of a google+ that you like? I have not really found anything to really like about G+.
  • musik
  • Legend
  • Super Moderator
  • User avatar
  • Posts: 6893
  • Loc: up a tree

Post 3+ Months Ago

One huge stand out feature is the circles. I like the idea of putting different people I know into a circle and being able to moderate who sees what. This way I can intergrate work friends, close friends, family etc.

Facebook forces me to tell people too much. If I want to create a group so I only post to select people, it will tell them who is a part of that group. Why I have no idea. But it annoys me no end.
  • Hob Bramble
  • Proficient
  • Proficient
  • User avatar
  • Posts: 351
  • Loc: Indiana, USA

Post 3+ Months Ago

musik wrote:
...I like the idea of putting different people I know into a [Google+] circle and being able to moderate who sees what...
...If I want to create a [Facebook] group so I only post to select people, it will tell them who is a part of that group.


But Facebook [i]Lists[/l] let you do pretty much the same thing as Google+ Circles, and don't let the list members know who else in on the list.

Post Information

  • Total Posts in this topic: 37 posts
  • Users browsing this forum: No registered users and 33 guests
  • You cannot post new topics in this forum
  • You cannot reply to topics in this forum
  • You cannot edit your posts in this forum
  • You cannot delete your posts in this forum
  • You cannot post attachments in this forum
 
 

© 1998-2014. Ozzu® is a registered trademark of Unmelted, LLC.