Jun 18

I’d be lying if I said that I am not impacted by the Instagram valuation and the Facebook IPO. nike air max 1 ultra moire femme As an entrepreneur/ investor in startups, I’m now thinking about internet ideas where the market could be the whole world. Having said that, let’s look into more detail on whether Facebook’s is worth $100 billion. nike air max pas cher Number crunching Forbes has done some excellent research here

  • At $100 bn, facebook is valued at 30 times trailing revenue.
  • Who else is valued at that level? Google is at 5.5 times trailing revenue…
  • For Q1 revenues – Facebook is at $1.06 billion (down 6.5%). Kenley Jansen Authentic Jersey Google is at $2.9 billion (up by 1%)
  • Micsrosoft is a shade over $200bn valuation with a whopping $25 bn as pure profit. There’s an interesting piece on MS over here. Even though its unfair to bucket MS with these companies, there’s a point to be made about value and valuation of companies.
  • S&P 500 is has a price/ sales ratio of 1.3 (industry average 3.7)

What about the last round of funding? The previous valuation at $50 bn with the Goldman investment was also questioned heavily by analysts. Some are even suggesting that fees Goldman will generate from Facebook eventually could pay for the whole investment. asics femme Read more here. All about the Advertising Facebook’s revenue comes from advertisers. Teddy Bridgewater – Louisville Jerseys My younger brother Vikas is convinced that advertisers won’t find the right customers while they are browsing social networks social networks will never find the audience at the right time/mindset for the advertiser’s benefit. fjallraven kanken rugzakken Therefore they will struggle to drive transactions through it and will struggle to define ROI like on other online channelsNike Air Max 2016 Dames roze but on the other hand one of my customers was delighted by the hyper targeting ability (18-14 year olds in Ahmedabad) for their advertising and immediately see benefit over google adwords which is approximate at best on demographics and geography based targeting. Let’s look at the data:

  • Click Through Rate for the web is generally 0.1%
  • Google is at 0.4%
  • Facebook is at 0.051%
  • Facebook reaches 51% of all internet users, Google reaches 90% of all internet users
  • Once you strip out the payments Facebook is receiving from app makers like Zynga, the rate of ad revenue growth is much closer to that of Google—but from a much smaller base, and it’s declining. T.J. Yeldon College Jerseys From the quarter ended in September 2011 to the quarter ended December 2011, it fell 33.3 percent to 44 percent. From December to March, it fell 7.1 percent to 36.9 percent.

But then again does facebook even want to play this game? “So far, Facebook’s advertising platform hasn’t kept pace with the explosive growth of its social network, and it remains to be seen if CEO Mark Zuckerberg even wants to focus on advertising as a source of revenue. In his 2,500+ word letter to shareholders this month, he mentioned advertising just once,” said Larry Kim, Founder and CTO of WordStream. Remember Orkut? The other day, the wife was reading out the age classifications for Baby boomers, Gen X and Gen Y. Nike Air Max 2016 Heren zwart As I am in the 18-32 bracket today, I have squeezed into the Gen Y generation by the skin of my teeth. Can’t say I completely relate with the kids who have only grown up on touch screen interfaces.. Adidas ZX 750 Heren but what the heck… Adidas NMD Dames Yeezy Boost 350 Donna I’m still young! yippee! The reason I bring this up is, following Schumpeterian economics, the gale of creative destruction is possibly due now. goedkoop schoenen adidas Nike Air Max Très pas cher How long will facebook remain cool and hip and yong. It’s 8 years old – the novelty is gone. In the US, the number of accounts are possibly on the decline. Given, Zuckerberg’s knee jerk reaction with Instagram – you get the feeling they feel the threat of becoming obsolete. Nike Pas Cher Orkut had 20 mn. users in India in one year… Goedkoop Adidas Superstar and down to zero in the next. To summarise, if I were the head of a pension fund … I’d run away from this one. sac fjallraven kanken pas cher It’s extremely high risk…. stan smith adidas dames asics femme pas cher with an unclear plan for returns.

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