How Facebook Could Reach $125 Billion
First look at the news and you can see my view about that:
Now that Facebook has raised a $1.5 billion financing round, led by Goldman Sachs, its new investors are waiting for their fortunes to multiply.
While some critics remain skeptical that Facebook — which is said to have made about $2 billion in revenue last year — is worth the round’s $50 billion valuation, momentum is certainly on the company’s side.Shares of Facebook are still soaring in the secondary market.The company’s shares are trading at an implied valuation of $76 billion, according to Sharespost. For the biggest Facebook bulls, the next number to contemplate is $100 billion.
According to a new report by the financial research firm Trefis, that is certainly possible.
Trefis currently puts Facebook’s worth at a (relatively) modest $45 billion, but the firm says there are four likely developments that could push the social network’s value to $125 billion: a doubling of ad revenue per page; page views increase by 50 percent; Facebook’s share of the search market hits 10 percent; a doubling of game revenue per user.
The co-founder of Trefis, Cem Ozkaynak, says Facebook is still far off the mark, but he says recent moves by the company are moving the needle on user interaction.
“It’s introducing more ads on its pages, changing the profile page design to emphasize photos that can lead to more page views and integrating Web search results within Facebook search results, changes that improve the likelihood that our scenarios on page views per user and search market share are plausible,” he said.
Not bad for a start-up company that went from the dorm room to billion-dollar funding rounds in seven short years.
My view:
The facebook is a kind of communication tool for us now. We can find people that we may lose touch for a couple of years. It is very convenient for us to keep in touch with friends. Besides, you can make new friends on it. We can share everything we want to inform the people and exchange our ideas.
There is no doubt that the Facebook brings a huge profit to the company. Now, facebook worth at a modest $45 billion, the profit will still increase. The founder will take actions to move the needle on user interaction. This movement will be able to add more profits for the founder, from my view, user interaction is very important for us to use this communication tool. If some changes occur on user interaction, it will be good for user and firm.
User is not the passive role in the media. In the media world, we can give the feedback and opinion to the founders so that they can change their way to attract more attention from the public. What's more, the user will get more benefits from those changes. What can we do about it is to participate media. It will be helpful for us to live better.
I find this news at http://nytimes.com/ enjoy it and please give me comments if you like
I agree about her opinion on facebook. Facebook has brought a revolutionary way to communicate with friends and to keep up with family members as well. I just hope that facebook will eventually have e-mail.
ReplyDeleteYES Facebook pretty powerful company, i read an article about Facebook's shares being sold to the public, at least is a possibility. for people that would like to invest in the market that would probably be a really good safe investment due to the enormous popularity of this social network all over the world.
ReplyDeleteAmerica is so connected now because of facebook. I remember when myspace was cool. Then i got to college and everybody has a facebook. Even my mom jumped on the bandwagon and got a facebook. I think its funny when i hear that a relationship is "facebook official" that means its serious. Facebook has found away to be a part of our society. I do think it is a good tool though. I agree with Yu Fu. Facebook does help you keep in touch with long lost friends. Facebook will dominate in the next coming years.
ReplyDeleteI think the views that everyone has is right on target, but do people think that facebook will die out? Kind of like myspace has, even myspace is not fully out the picture myspace is used less than facebook, so will some other user interaction overpower facebook?
ReplyDeleteI would like to see some follow-up on what Jamario said. Will Facebook see its leveling off in the near future. Yes, it has given people a way to stay in touch and has altered the way in which we communicate with each other. It has also helped to develop a new type of "language" with all of the symbols, word shortcuts and acronyms. Very interesting change.
ReplyDeleteInteresting blog views :) Facebook definitely has become the norm in our society over the past decade. People are constantly saying words or phrases and then deeming them "That's a facebook status." People have learned to fuel off this social medium by revealing feelings like with Breken "Facebook official" comment, and update others on their lives. It is a great way to stay connected or get to know people! Great outlook :)
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