The buy side and sell side of invstment banks work as two different entities that are "seperated" from one another. http://en.wikipedia.org/wiki/Chinese_wall
A social networking dot com worth $50,000,000,000????
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The buy side and sell side of invstment banks work as two different entities that are "seperated" from one another. http://en.wikipedia.org/wiki/Chinese_wall
I never heard of Groupon either till the other day.
Life is turning into one big arcade game. So full of nonsense and timewasters, shopping is a skil set in todays world.
Back in the day, this is the price, take it or leave it. Every company today wants to be an airline pricing machine.
Life is turning into one big arcade game. So full of nonsense and timewasters, shopping is a skil set in todays world.
Back in the day, this is the price, take it or leave it. Every company today wants to be an airline pricing machine.
Women.
My understanding is Men and women have completely different online profiles.
men:
Sports, Stock quotes/business, Porn
Women:
Shopping, Shopping, Shopping.
My understanding is Men and women have completely different online profiles.
men:
Sports, Stock quotes/business, Porn
Women:
Shopping, Shopping, Shopping.
For anyone who thinks $50B is ridiculously high, take a look at a single company which makes its revenue from Facebook huge community structure, http://en.wikipedia.org/wiki/Zynga, +$600M in 2010, or 1.2% of the Facebook evaluation..
The valuation may be considerably high and when/if it goes public remains to be seen if it will retain its market cap. Although the power comes in it not from what most of your average thinkers here ascertain from why facebook should/shouldn't be such a powerful company, but what the generation who uses it most thinks of it. Realistically Facebook has been the only social network that seeped through the cracks to the point that it's considered socially acceptable for any generation to use it. Although it's a teeny bopper and college kid haven...
Adults,Families, businesses etc.. use it for all sorts of purposes. Afterall, where else are you going to go on the internet to track down people you haven't spoken to in years "successfully"...and it's free...Or share the family photo album and all of life's little details with relatives and friends spread out across the world so they don't miss out on anything... Then there's apps, marketing, interactive games all sorts of stuff I'll never use but it's created tons of successful businesses just because it exist. It's here to stay just like email.
Adults,Families, businesses etc.. use it for all sorts of purposes. Afterall, where else are you going to go on the internet to track down people you haven't spoken to in years "successfully"...and it's free...Or share the family photo album and all of life's little details with relatives and friends spread out across the world so they don't miss out on anything... Then there's apps, marketing, interactive games all sorts of stuff I'll never use but it's created tons of successful businesses just because it exist. It's here to stay just like email.
Zynga:
"....Zynga now has more than 1300 employees worldwide.
As reported by Bloomberg and others, stock trades on the private stock sale service SharesPost established a valuation of above $5 billion for the company, greater than the public market capitalization of gaming industry leader Electronic Arts and has more than 320 million registers users, 1,300 employees and estimated revenues above $500 million for 2010."
Shouldn't we evaluate companies based on profit rather than revenues??
Also there is a difference:
"Business model
Zynga is supported in two manners: Via direct credit card payments and partner businesses."
So users actually pay for Zynga games, unlike FB users.
"....Zynga now has more than 1300 employees worldwide.
As reported by Bloomberg and others, stock trades on the private stock sale service SharesPost established a valuation of above $5 billion for the company, greater than the public market capitalization of gaming industry leader Electronic Arts and has more than 320 million registers users, 1,300 employees and estimated revenues above $500 million for 2010."
Shouldn't we evaluate companies based on profit rather than revenues??
Also there is a difference:
"Business model
Zynga is supported in two manners: Via direct credit card payments and partner businesses."
So users actually pay for Zynga games, unlike FB users.
I agree that Facebook doesn't capitalize on Zynga's revenue stream very much yet. But Zynga couldn't have reached a 80+ million player base without Facebook. Which reflects on the value of Facebook, even if they arn't capitalizing on that aspect... yet. If Facebook gets it together and creates an 'App store' which allows a low barrier of entry to game and service developers to their ridiculously huge market while taking a small cut, they could do quite well in the future wrt secondary applications.
The Zynga thing is debatable, but today's business models are forever changing and being newly discovered in the digital age. If you want to think of it in those terms... What's to stop Facebook from creating 10 successful income streams from capitalizing on what it's created. They built it and people have already come. The hard part is already done. All they have to do is lead people in directions they want, and they have all the analytics they could ever use to make it happen.