Facebook's $100 billion valuation may be vaporware |
| msnbc.com - Feb 3, 2012 |
Facebook was famously born in a Harvard dorm room, which might be why its much-hyped valuation of $75 billion to $100 billion seems to suffer from grade inflation.
Facebook pulled back the curtain on some of its financials in its IPO filing yesterday, and analysts started combing through it immediately. Even the ones who are positive about Facebook's long-term potential — and not all of them are — concede that a valuation of up to $100 billion basically bakes in the assumption that the social network will become the next Google — or better.
The divide seems to be between those who think Zuckerberg and his team have the chops to live up to their early potential, and those who don't.
Facebook has a lot going for it: 845 million active monthly users, more than $3 billion in annual revenue and a still-galloping growth rate. Its profit margin of 27 percent last year also compares favorably with fellow Internet giant Google's 26 percent.
Read Full Article from msnbc.com
- Posted: 2012-02-03 13:16:45
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