Facebook Valued at $100 Billion?

Facebook to be valued $100 billion. But how much is it worth? There's a difference between price and value.
Nov. 29 (Bloomberg) -- Facebook Inc. is considering raising about $10 billion in an initial public offering that would value the world’s largest social-networking site at more than $100 billion, a person with knowledge of the matter said. 
The company may file for the IPO before the end of the year, said the person, who asked not to be identified because the deliberations are private. [...] 
Facebook’s $100 billion valuation would be twice as high as it was in January, when the company announced a $1.5 billion investment from Goldman Sachs Group Inc. and other backers. [...] 
At $10 billion, the offering would raise more money than any other technology IPO, a sign Facebook expects investors to clamor for a piece of the social-networking company.
Investors never learn the lessons and keep on bidding on the most overvalued IPOs (LinkedIn and Groupon, just to name a few), getting burnt every time but not enough to burn into flame — yet. But like the moth flying to the flame, at some point they will burn down badly and will never be able to recover. In the meantime, we can say that the Mania Era is still far from being finished, and that long term bullishness has not be squashed yet.

1 comment:

Tiho said...

Facebook is a terrible investment, however, if you put a gun to my head right now and said to me you either have to invest one million dollars into Facebook or leave it in cash, I would chose Facebook, because, while might lose a lot of money... I won't lose all of it!

Commodities will make you so so rich, equities will hold their own, bonds will be a disaster and cash will leave you with 0!