(Reuters) - Facebook earned $355 million in net income in the first nine months of 2010, according to documents distributed by Goldman Sachs, a fraction of the online social network's $50 billion valuation.Reminder:
"They probably did at least $500 million in net income in 2010," Jacob said.
Goldman began hand-delivering copies of the 101-page private placement memorandum for a $1.5 billion Facebook offering to its wealthy customers a little after lunchtime in New York, according to a person who received a copy.
The Goldman customer said he received a separate six-page financial statement containing information on the social networking company.
The document provides some of the most detailed financial information yet about Facebook, which Goldman recently valued at $50 billion in a separate, $450 million funding.
The financial statements were not audited and offered little detail about how Facebook generates it revenue, said the source, who did not want to be identified because he had signed a non-disclosure agreement.
Investors are increasingly eager to buy shares of Facebook and other fast-growing Internet social networking companies on private exchanges.
In just within one month, all the stars have aligned and we now have the perfect set up for a major major top followed by a sharp decline which probably will be even more dramatic than what we experienced in 2008. See for yourself the previous "achievements" of Mr Market:
- No New Normal Next Year Seen by Strategists Predicting 11% Gain in S&P 500
- Hedge Funds Raise Commodity Gain Bets to 4-Year High
- Put Call Ratio: Everyone’s Betting On The Bull
- Volatility is back to April 2010 levels
- Rydex Nasdaq 100 Bull/Bear Ratio At Highest Since Dot Com Collapse
- US CEOs Most Optimistic since 2006
- Extreme bullishness in emerging countries, money pouring into stocks at the fastest pace since 2007, biggest rally in 16 years
- SentimentTrader.com: Equity Hedging Index is at a new record low
- Trading of U.S. stock options soared to the second-highest level in nearly four decades of history
- Please also note that the put/call ratio is dangerously approaching the historically low level of April 2010
- Volatility as measured by the VIX falls back to April 2007 levels
- Best time to buy stock in decades (yes, there's an ending 's' at decades)
- Jim O'Neill, Goldman Sachs Asset Mgmt. chairman: "2011, Year of the USA"
- Market Sentiment: Margin Debt Soars to Highest Levels Since September 2008
- Market sentiment: crude oil bets reach a four-year high