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?
