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Facebook (FB) deserves a valuation of $75B, not $100B, suggests Henry Blodget. While Facebook...

Facebook (FB) deserves a valuation of $75B, not $100B, suggests Henry Blodget. While Facebook merits high multiples, they shouldn't be higher than LinkedIn's (LNKD), which is growing faster. Blodget notes Facebook's ad sales growth fell to 44% in Q4, and its payments growth is likely to slow down, given it was fueled by a policy change. Moreover, Facebook's 50% operating margin leaves little room for expansion. (more)
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Comments (6)
  • Conventional Wisdumb
    , contributor
    Comments (1802) | Send Message
     
    How many shares are outstanding?

     

    I can only imagine what the PE will be after this starts trading. At least it does have net income unlike a lot of the crap that has come through the (crack) pipe recently.

     

    I would have loved to see this valued at $10 billion as it would shot off like a rocket at that valuation but too many insiders need to get paid and booking losses on an IPO would be a definite no/no.
    2 Feb 2012, 09:44 AM Reply Like
  • mogando
    , contributor
    Comments (313) | Send Message
     
    FB can only grow their customer base. But given only 6B people on Earth (most too poor to use the internet) and FB already has 850M of them, the untapped market is diminishing quickly.

     

    And there's only so much ads you can spam out before customers get overly annoyed and move to newer social networks. *UNLESS* they spam you with ads merciless on a free version, then offer an ad-free subscription.

     

    With the openness of FB's API, i can't imagine it would be too hard for someone creating a migration tool that can transfer ALL your info, wall posts, and photos from FB to G+.
    2 Feb 2012, 09:46 AM Reply Like
  • Conventional Wisdumb
    , contributor
    Comments (1802) | Send Message
     
    There will be micro-social networks devoted to specific groups (poker clubs, sports, gay, religious) based upon common interests that will slowly erode the overall loyalty and intensity of the FB user. Especially as you point out when FB gets crazy about trying to suck every last dollar of Ad revenue from the user base and eventually annoys the crap out of anyone using it.

     

    I think that's the fear that compels Zuckerberg to remain the uncontested dictator of the company.
    2 Feb 2012, 10:05 AM Reply Like
  • labas112
    , contributor
    Comments (335) | Send Message
     
    This is why they create Ad block programs for the internet.
    2 Feb 2012, 10:06 AM Reply Like
  • delatopia
    , contributor
    Comments (38) | Send Message
     
    If you enjoy free media sites like Seeking Alpha or your favorite newspapers, the least you could do is allow ads. It is a relatively painless way of allowing your favorite free sites to receive revenue.

     

    Why ad blocking is devastating to the sites you love:
    http://bit.ly/yYI6bY
    4 Feb 2012, 04:15 AM Reply Like
  • Spencer Knight
    , contributor
    Comments (397) | Send Message
     
    I would enjoy watching Facebook rumor a fee or any kind of ad free subscription. There will be a mass exodus in that scenario because FB is only used because it's just too easy to sit in a chair and kill time on FB. If there's a fee the vast majority of people will leave FB and become more productive individuals. Imagine that, young Americans becoming more productive??

     

    Or they will find another social network to join and not change at all.
    2 Feb 2012, 04:37 PM Reply Like
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