
Facebook is not worth $33B (2010) - rl12345
https://signalvnoise.com/posts/2585-facebook-is-not-worth-33000000000
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rl12345
It is easy to be a critic of private venture backed companies valuations as
these investments are done considering where the world _could_ be in the
future vs where it is now. These kind of bets requires not only financial
models but also unique vision and a lot of guts -- traits hard to train but
present in most of mankind's big achievements. So it's no wonder those bets
pays really well when they succeed.

Of course, if you're not a fan of how the private venture backed companies
game works, you can always do a traditional business and use profits as the
only source of growth. That's the beauty of our current system: it's not
perfect but it still allows you to choose whatever path you want to and still
have a good chance to make it work.

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simonh
Quite. Facebook's net income for 2014 was about $3B and it's current market
cap is $294B. I'm not saying it's current market cap is sensible, that's for
the future to decide, but looking at the historical facts clearly it's
valuation at $33B in 2010 has turned out to have been well judged.

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foldr
How much of that 3B was profit?

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simonh
All of it. Net is after cost of goods, tax, etc. Their revenue was about $10B.

