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**corsar-caribean** · 05-19-2012, 06:55 PM

Name a single other place on the Internet (apart from social networking sites) where a single person can post so many facts, nude images, interests, beliefs etc than on Facebook and I'll accept your argument ?

4Chan? Not supposed to find nudes on Facebook, though.

And, Dangermoose, Facebook's debut was pretty close to disaster TBH. http://www.bbc.co.uk/news/business-18115914 if it wasn't for Zoolook's company buoying the share price, who knows what it would have dropped to. If I was playing the market, I'd be betting the shares falling to $25 within 6 weeks due to the lack of results real investors can make due diligence from.

There are a lot of sceptics:

Skeptics have argued all along that a valuation of more than $100 billion -- about equivalent to Amazon.com Inc and exceeding that of Hewlett-Packard Co and Dell Inc combined -- was far too high for a company that posted $1 billion in profit and $3.7 billion in revenue in 2011.

Concerns about Facebook's earnings potential were highlighted by General Motors' announcement this week that it would no longer buy paid advertising on Facebook.

"You don't need more than a small pencil and napkin to do a valuation on this, to say there are heroic assumptions in earnings growth to keep this at $100 billion, much less $115 billion or $120 billion," said Dave Rolfe, fund manager at River Park Wedgewood Fund, which does not own shares in Facebook.

"I know there's a lot of excitement and exuberance, but it seemed today that the market is starting to do some hard valuation math early on." Reuters.

Putting a $100bn value on a company that is not proven, is like buying eggs at a ridiculous value because similar eggs have developed into hens which lay golden eggs. Facebook's value should be around $10-30bn MAX right now, and then grow its share price and value organically as it proves it can grow its revenue and profitability.

05-19-2012, 06:55 PM	#54
corsar-caribean Join Date Oct 2005 Posts 434 Senior Member	Name a single other place on the Internet (apart from social networking sites) where a single person can post so many facts, nude images, interests, beliefs etc than on Facebook and I'll accept your argument ? 4Chan? Not supposed to find nudes on Facebook, though. And, Dangermoose, Facebook's debut was pretty close to disaster TBH. http://www.bbc.co.uk/news/business-18115914 if it wasn't for Zoolook's company buoying the share price, who knows what it would have dropped to. If I was playing the market, I'd be betting the shares falling to $25 within 6 weeks due to the lack of results real investors can make due diligence from. There are a lot of sceptics: Skeptics have argued all along that a valuation of more than $100 billion -- about equivalent to Amazon.com Inc and exceeding that of Hewlett-Packard Co and Dell Inc combined -- was far too high for a company that posted $1 billion in profit and $3.7 billion in revenue in 2011. Concerns about Facebook's earnings potential were highlighted by General Motors' announcement this week that it would no longer buy paid advertising on Facebook. "You don't need more than a small pencil and napkin to do a valuation on this, to say there are heroic assumptions in earnings growth to keep this at $100 billion, much less $115 billion or $120 billion," said Dave Rolfe, fund manager at River Park Wedgewood Fund, which does not own shares in Facebook. "I know there's a lot of excitement and exuberance, but it seemed today that the market is starting to do some hard valuation math early on." Reuters. Putting a $100bn value on a company that is not proven, is like buying eggs at a ridiculous value because similar eggs have developed into hens which lay golden eggs. Facebook's value should be around $10-30bn MAX right now, and then grow its share price and value organically as it proves it can grow its revenue and profitability.
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