> First, have you really done the math on how much money Facebook earns for each penny it extracts from end-users? Do you use Facebook today? I do, and I couldn't tell you what they're really making money on. They don't appear to have turned on the money spigot yet.
No. I was talking about revenue, not profit. From the OP: $50B valuation vs projected $2B revenue this year. No idea what they do with what they get to keep.
> When you cry "bubble", you have to be talking about the market as a whole. It makes less (some, but less) sense to me to talk about there being a "Facebook bubble".
FB is a private company. The distinction is that it's a huge company that now major players on Wall Street are trying to invest in. These types of dealings could potentially put Goldman in a compromising position with another bailout just over the horizon. Also, could this trigger a bunch of inflated valuations of other companies in this industry?
I'm not objecting. Most of this is not affecting me at all. Just pointing out that Goldman did not increase FB's fundamental value. It's only trying to set up favorable conditions to offload FB on someone else and make out on the profits. The "someone else" may end up getting burnt. In fact I believe that they will get burnt sooner or later. Or possibly, it may be Goldman, who is then going to ask for a second bailout. In either case, it's not my money.
No. I was talking about revenue, not profit. From the OP: $50B valuation vs projected $2B revenue this year. No idea what they do with what they get to keep.
> When you cry "bubble", you have to be talking about the market as a whole. It makes less (some, but less) sense to me to talk about there being a "Facebook bubble".
FB is a private company. The distinction is that it's a huge company that now major players on Wall Street are trying to invest in. These types of dealings could potentially put Goldman in a compromising position with another bailout just over the horizon. Also, could this trigger a bunch of inflated valuations of other companies in this industry?