Many estimates have been made as to Facebook's IPO valuation, ranging frmo $70 billion to $100 billion(http://www.cnbc.com/id/43378490/Facebook_IPO_Valuation_Could_Top_100_Billion_Sources). These are outrageous estimates but i do not doubt at all that they will follow through. Only a few years ago, Microsoft valuated Facebook at $250 million, and people looked at this and called Bill Gates insane (including Rupert Murdoch, who watched MySpace crumble down to nothing as Facebook grew its empire). But the impending question that all future stockholders should be considering now is what exactly will become of Facebook in the future? How will they expand their profits and growth in order to ensure steady returns for its stakeholders?
The answer may lie in the many industries/fields Facebook is currently looking to expand into or has already started expanding into. These include the video and photo uploading and sharing, online tv show and movie streaming, online advertising, search, social graph, apps (platform), article sharing, and many others. If Facebook could successfully expand into all these areas and take over their respective markets, it might truly become the next internet 'king', owning the majority market share of many online functions. If this the true future, I would recommend everyone to invest, and invest fast. But without being too hasty, I would also recommend a deep analysis of the future possibilities of failure. What if Facebook only lasts for another 5 years, then what? Although i personally do not believe this to be true, i wouldn't want people to invest their life savings and retirement money and then lose it all in a couple of years.
No comments:
Post a Comment