Monday, January 3, 2011

Facebook Valuation Rises to $50 Billion - Is This a Correct Valuation?

Facebook Valuation Rises to $50 Billion – Is This a Correct Valuation?

I just came across an article that I just had to share and talk about because it’s so relevant in today’s market.

I just reviewed an article about Facebook receiving $500 Million Dollars in funding based on a valuation of $50 Billion!

You can see the full article here: http://bit.ly/gZQLXe

Here is what we don’t quite understand is HOW can this new valuation of Facebook be correct? We all know that Facebook traffic is up and now more people check Facebook before they even check their own personal email. Ok we get that.

We also know that Facebook is expanding worldwide and in all reality, Facebook is rather “new” to the world. We know that “new” is a relative term for an online business. Facebook is picking up speed and with recent new Facebook partnerships, Facebook is poised to be the new mammoth revenue producing machine. As people join Facebook and become more engaged on the network, the revenue possibilities are endless. OK we get that too.

But here is the part I did NOT get... check it out and tell me what you think? http://bit.ly/gZQLXe

My best,

Curt Maly

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