Coinspeak Technical and Fundamental Market Analysis
(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.
agreed. the VC asshats just blew the con as well. wtf is the street thinking?
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.
also see twitter, great post.
@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/