Saturday, January 08, 2011

FT.com / Technology - Why $50bn may not be much between friends

Excerpt from an accentuate-the-positive Facebook perspective

There is a more tantalising possibility, however: Facebook may actually be undervalued, even at these lofty levels. Even Google itself is running scared, unable to find a response to the web’s latest phenomenon. $50bn sounds like a lot and no current financial measure can come close to justifying a value like this – certainly not Facebook’s reported $2bn in annual revenues. But it could make sense if the company lives up to its huge potential – which stems from a dawning awareness among investors that the social networking service has a chance to embed itself deep within the web, and the lives of its users. If it does, then the figure will prove to have been far too conservative.

FT.com / Technology - Why $50bn may not be much between friends

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