Facebook Crackheads

(This was drafted Thursday night before the IPO.)

At $38/share FB will be valued at $100 Billion. That is 1/10th of ONE TRILLION DOLLARS.

Supposedly FB has ~1 Billion users. That means each user is worth $100 (at $38/share). If a click through on a FB ad is worth $10 to FB then each user would need to click on 10 ads (timeframe irrelevant for this example).

I believe in my 20+ years on the Internet (Yes, I had dial up AOL. Shut up.) I have clicked on less than 10 ads.

Someone please tell me how this does not end poorly. IMHO, it gets even worse because the boy CEO who blew $1 Billion on Instagram is still firmly in control.

The Social Media / also rans have similar issues. My one Internet pick is GOOG. I will write more about GOOG in another post.

About coinspeak

20 years as an IT consultant. Escaped the rat race in 2015. Addicted to travel and tacos.

Check Also

Divided States of America

The USA is in day 2 of an election that may end up being decided …

4 comments

  1. agreed. the VC asshats just blew the con as well. wtf is the street thinking?

  2. I was wondering about the same thing. FB already announced their revenues decrease before the IPO; perhaps advertisers are beginning to see their ad dollars to FB don’t generate more business? I guess we won’t be surprise when quarterly earning from FB starts to show declining revenues.

  3. also see twitter, great post.

  4. @zenhunter, I started to write a reply but since it was so long I made it a new post. Check out http://ibankcoin.com/en1gma/2012/05/19/this-is-where-facebook-works/

Leave a Reply

Your email address will not be published. Required fields are marked *