

Facebook really worth around $25 billion? - sajid
http://dealbook.nytimes.com/2012/05/18/after-a-lackluster-debut-facebook-must-prove-itself-to-investors/

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dude_abides
It doesn't matter if a professor at Kellogg thinks it's worth 25 billion, as
long as enough investors think it's worth 100 billion (as is the case today).

It is a different matter, though, if a large fraction of those who think it is
worth 100 billion is just Morgan Stanley. Then there is definitely a problem.

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bunderbunder
_as long as enough investors think it's worth 100 billion. . ._

. . . for now, and continue to increase their estimation of the company's
worth in the future.

That's a key caveat. The easiest way to get hurt by an overvaluation is to
conflate what people are valuing something at right now with what it's
actually worth. Overvaluations and undervaluations both tend to regress back
toward a fair valuation over the long haul. Even poor valuations that most
everyone agrees with for the moment. People's opinions can and will change.

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raldi
Where did you get that title from? I see no mention of $25 billion in the
article.

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Jaymz87
CTRL+F "$25 billion":

“I can’t justify it,” said Anup Srivastava, an assistant professor at the
Kellogg School of Management at Northwestern University. “Facebook is a great
business, but it’s worth around $25 billion.”

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P_rennes
900 million users imagine!

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P_rennes
and it has radically changed the way of socializing and doing business.

