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Does Facebook deserve the $100B IPO valuation it's reportedly shooting for? Bulls will point to...

Does Facebook deserve the $100B IPO valuation it's reportedly shooting for? Bulls will point to soaring revenue, improving ad monetization, and an eye-popping share of consumer Internet usage. But Douglas McIntyre isn't convinced, noting that at $100B, Facebook will be worth more than Cisco (CSCO), which has over $6B in annual profits, and over $30B in net cash and investments.
Comments (17)
  • moreofthesame
    , contributor
    Comments (743) | Send Message
     
    Selling more adspace would drive away users. The rule remains that it is based on Internet hype and can potentially fade as fast as it came as soon as a newer and better and more cloud integrated blah blah comes about.
    29 Nov 2011, 08:50 AM Reply Like
  • The Mighty Wart
    , contributor
    Comments (112) | Send Message
     
    Honestly this valuation is ridiculous
    29 Nov 2011, 08:51 AM Reply Like
  • The Geoffster
    , contributor
    Comments (4010) | Send Message
     
    Facebook is easily worth 100B.....to the NSA.
    29 Nov 2011, 09:27 AM Reply Like
  • rjj1960
    , contributor
    Comments (1359) | Send Message
     
    The company should be valued at a reasonable price, NEGATVE 100 BILLION............ It was stated that 25 -30 % of all divorces had something to do with Facebook. We have teens and preteens on Facebook for hours. Adults that have nothing going on that must be lonely posting comments about senseless topics. Impossible to imagine if all this wasted time was put to good use, what a world we would have. Facebook has created a world full of zombies.
    29 Nov 2011, 09:30 AM Reply Like
  • inthemoney
    , contributor
    Comments (981) | Send Message
     
    $100 bil for a Wbesite is crazy,people putting this kind of valuation on it are crazy.
    I can live without Facebook , I am not on it. I cannot live without great many things which are valued so much more moderately - food, clothes, housing, transportation, electricity.
    29 Nov 2011, 09:50 AM Reply Like
  • ChicagoB
    , contributor
    Comments (63) | Send Message
     
    Only if you're in an equally ' hyped' up state! It was an estimated $50bn in january on $2bn in sales.
    29 Nov 2011, 10:32 AM Reply Like
  • Pierre Durand
    , contributor
    Comments (26) | Send Message
     
    Facebook should literally be worth $200B, it will control American society for the next 50 years.
    29 Nov 2011, 10:41 AM Reply Like
  • theagen11
    , contributor
    Comments (67) | Send Message
     
    If you compare the financials from when GS made its investment and compare it to a company like GOOG. The FB is grossly overvalued.

     

    It is just a matter of time till something better comes around and crushes Facebook. The same goes for GOOG.
    29 Nov 2011, 11:10 AM Reply Like
  • jfdiaque
    , contributor
    Comments (32) | Send Message
     
    I PRAY every day that facebook goes public so I can short the shit out of it. Because it is just like that other organization groupon (a great idea but not much of a business).
    The best idea would go to Ballmer and sell FB to him for $200B, from his past performance it seems he likes overpaying for companies.
    29 Nov 2011, 12:24 PM Reply Like
  • Insurance Bull
    , contributor
    Comments (357) | Send Message
     
    I believe AAPL was worth $100B in the middle of 2007 somewhere. Is Facebook really as big as AAPL in 2007? In terms of popularity yes of course. But to go further than that is all speculation. There's only so much you can do with ads on a website. The same can be said about AAPL products, but as we see y/y AAPL keeps adding one little thing here or there as the newest chips, screens, etc are created.

     

    I hope Facebook never goes public because we don't need toys being publicly traded. If I want to play with toys I'll turn on the PS3 all day.
    29 Nov 2011, 03:03 PM Reply Like
  • TDesmo
    , contributor
    Comment (1) | Send Message
     
    What will save Facebook is the fact that it will be hosting over 200 billion photos by this time next year. No one wants to abandon all of those memories. Usage may go down but they'll always have 500 million+ profiles. Regardless, $200B is a bit lofty for something that only sells advertising.
    29 Nov 2011, 04:08 PM Reply Like
  • 7footMoose
    , contributor
    Comments (2266) | Send Message
     
    NFW
    29 Nov 2011, 04:49 PM Reply Like
  • TheAxe
    , contributor
    Comments (132) | Send Message
     
    well thats 25 times sales.....amazing....so answer NO
    29 Nov 2011, 05:46 PM Reply Like
  • theagen11
    , contributor
    Comments (67) | Send Message
     
    There was...
    Friendster
    Myspace
    Facebook

     

    Something will come to eat them up. Just like everyone said AOL could not be beaten look what occurred.

     

    How much money can they possibly make off of advertising? At one point people get so annoyed that they stop using Facebook.
    29 Nov 2011, 08:20 PM Reply Like
  • The Mighty Wart
    , contributor
    Comments (112) | Send Message
     
    This is just part of the hype created by the underwriters to boost the valuation at time of the IPO so they can charge and justify their hefty fees. FB has very little to say on this. If you are a shareholder and you are told by impeccable investment bankers that “your company is worth $XXXXXXXXXXXXXXXXXXX” you will believe it eventually. The worst thing is that many pension funds will be obliged to buy this shit since that with this sort of valuations FB will automatically belong to many popular benchmarks. A self fulfilling prophecy in a way, all fuelled by the greed of the IBs and the ignorance (and greed too) of the shareholders.
    30 Nov 2011, 08:22 AM Reply Like
  • 7footMoose
    , contributor
    Comments (2266) | Send Message
     
    FB is reportedly handling the IPO themselves.
    30 Nov 2011, 09:25 AM Reply Like
  • The Mighty Wart
    , contributor
    Comments (112) | Send Message
     
    That doesn’t change the self-fulfilling prophecy element out of the equation. Shoot for the highest price possible, no matter how ridiculous, that you will get the herd supporting it.
    30 Nov 2011, 10:07 AM Reply Like
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