02-04-2012, 09:48 AM
This user has been denied support.http://blogs.wsj.com/marketbeat/2012/02/ - Read this, and then post your opinion.
Definitely overpriced IMHO. I'm not an investor or anything, so I'm looking at this from the point of view of a webmaster. If anything is wrong, feel free to tell me, remember this is all estimation.
Approximately 2B people use the internet, and you can say about 1B use it daily. If FB holds around 850M active accounts /mo, it poses the question of how FB's revenue will increase. FB makes money from ads, simple, any company that advertises already advertises of Google, and with the current global economy businesses are more weary to fork out hundreds of thousands of dollars into advertising. So we can assume most businesses who advertise with FB is constant with minimal flunctuations, and anyone who isn't advertising with FB now may or may not advertise, either way, if they were to already advertise they would have been now.
It's just like Google's shares, Google doesn't get extreme bursts of traffic daily, since almost everyone knows about it, meaning that it's traffic is constant - and those who don't use it are already aware of it. This means Google's revenue is consistent on a month-to-month basis give or take a few thousand dollars here and there, not to mention they lost 8% in the last financial year.
This in total leads me to believe that FB has maximised their daily profit, sure they will have fluctuations on a monthly basis and some growth, but anyone with access to the internet has heard of FB, which means most people have registered, 850M active users is almost everyone online, since many would be inactive.
IMO, investing in FB may lead to some profit, but nothing so drastic where you make millions. FB's ad click rate has been like this for the past 3/4 years - LOW. You go on FB for your friends, pictures, people don't even notice the ads.
That's about it, that's my 2 cents.