Is Facebook Worth 104 Billion US Dollars?
Facebook's famous $16 billion IPO's live and the company's estimated worth is $104 billion. Analysts have been saying that the social networking giant has been 'overvalued' and the share prices may fall post the IPO. There are reasons as well. Facebook's revenues haven't been growing and in fact saw a dip this year. Why? Let's figure out -
Facebook already has 900 million users and people are wondering whether there's more room for growth. The obvious answer is yes: but biggest countries like China have put restrictions on Facebook access which means FB can't become popular in the biggest region in the world.
Facebook's revenues are only AD-BASED. That means, the company will have to continue making more money based on the slowing user growth while making sure that the revenues continue to grow. This seems more difficult problem!
I personally believe that people will start looking for alternatives in coming months and the early adopters who made Facebook a runaway hit, will now look for the next big thing. Given all these conditions, do you think Facebook's worth $104 billion?
Facebook already has 900 million users and people are wondering whether there's more room for growth. The obvious answer is yes: but biggest countries like China have put restrictions on Facebook access which means FB can't become popular in the biggest region in the world.
Facebook's revenues are only AD-BASED. That means, the company will have to continue making more money based on the slowing user growth while making sure that the revenues continue to grow. This seems more difficult problem!
I personally believe that people will start looking for alternatives in coming months and the early adopters who made Facebook a runaway hit, will now look for the next big thing. Given all these conditions, do you think Facebook's worth $104 billion?
Replies
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Anoop KumarI never seen a relevent ad on facebook since created my profile. 😛
I don't know how companies get profit from facebook ad. -
Kaustubh Katdare
You may not find relevant ad, but ads that have been targeted at you. If you examine the Facebook ad system, it allows you to correctly track the audience based on their profile. So it's possible to target people from USA who like the Coca Cola brand and are from Texas with Bachelors degree in Engineering.ianoopI never seen a relevent ad on facebook since created my profile. 😛
I don't know how companies get profit from facebook ad. -
Anoop KumarYa, My facbook status is single so they always publish some relavent ad
"Find single girl/ some creepy ad like make a girlfriend "😲 in right side pannel 👎 .
While I found google ad some how better, although I have not enabled search history.
while I search for some products in google and visit to a website, they show some relative ads. -
Kaustubh Katdare
The fact is, the future of Facebook and Google depends on how relevant advertisements they can show to the users. Facebook currently has an edge over Google because they have access to all the important data that can help them target the advertisements. Google, on the other hand, relies on cookies store on users desktops to figure out what would work for them. Google's gradually shifting from 'Context Based Advertisements' to 'Interest based advertisements'. That is, if you searched on Google for online shoe shop, then Google will try to bring all the relevant ads that sell you shoes. Now these ads may not be relevant to the content on the page that you're reading. That's a game changer. I don't know whether it brings them more revenue; but after some time, people may get pissed off looking at the ads really 'following' them.ianoopYa, My facbook status is single so they always publish some relavent ad
"Find single girl/ some creepy ad like make a girlfriend "😲 in right side pannel 👎 .
While I found google ad some how better, although I have not enabled search history.
while I search for some products in google and visit to a website, they show some relative ads.
I believe expanding purely on the basis of advertisements may not be the most ideal way for both the companies to keep growing their business. Until now, Google has had dominated Internet advertising with its reach across various continents. But that may change, very soon. -
Vivien.hugo$104 billion is huge money! I think time can test it worth or not.
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