Why is FaceBook worth billions?

[MaCruz]

Originally Posted by sfmarine

Ya..I am not fond of giving out my personal information. Now FB implemented that "new profile setup" where it automatically gives your personal information to anyone who checks out your profile..obviously, you can restrict some of it but it gives your DOB, high school/college job etc.

A little too much info for me..to each his/her own I guess. I really got tired of FB quick. I find it worthless to update my status every day like millions do.

I am curious about what will replace FB..I look forward to the day when FB becomes extinct much like Myspace has become.

Myspace was the shiznit a few years back. I was on that site all the time. Now that it got old as far as status 24/7, I don't want to spend more than 2 mins on FB. I get the question from everyone, "why don't you add me as a friend" I tell them, BECAUSE I don't go on FB!

[sfmarine]

haha I'm the same why. "You on Facebook?"..Ya...but I really don't go on etc. I should really just delete the darn account. Myspace was the shiznit...good times back in '05 haha.

[MaCruz]

Originally Posted by sfmarine

haha I'm the same why. "You on Facebook?"..Ya...but I really don't go on etc. I should really just delete the darn account. Myspace was the shiznit...good times back in '05 haha.

Heck yeah! 2005 I was drunk almost every night!

[JJ]

FB was where it's at, but I've moved on to Twitter.

[sfmarine]

Twitter is popular, but it will never become as huge as FB has become.

[SonOfArathorn]

These sites will never disappear as long there attention starved wannabe celebrities out there (read: forever). The internet has made everyone believe that fame is just a right (or wrong) youtube video away.
I'm happy to say I have never had a profile on a "social networking" site.

[Marcus Wright]

Originally Posted by SonOfArathorn

These sites will never disappear as long there attention starved wannabe celebrities out there (read: forever). The internet has made everyone believe that fame is just a right (or wrong) youtube video away.
I'm happy to say I have never had a profile on a "social networking" site.

Neither did I.

[Maximus]

Originally Posted by Septimus Prime

At its core, Facebook is a data mining company (if you read their TOS, it says that Facebook owns every bit of info you supply it) with the personal details of hundreds of millions of people—each of which is worth money to potential advertisers.

Google is the same, but I tend to trust Google more than Facebook.

My best guess is that Facebook are going to become one of the internet titans like Google and will begin to branch out of their core activities soon. They need money though which is why we saw them sell some some shares in the secondary markets. AFAIK the company doesn't run at a profit, but it does generate enough cash to keep going, which suggests to me that they are investing a lot of money in R&D.

What they are working on no one really knows right now, but my bet is a Facebook powered internet search engine which gives preference to fb pages over regular pages. Facebook is all about keeping the user within the walled garden for long periods of time, if fb could integrate enough with news and media companies and host websites within the confines of fb, then users will have little reason to ever log out. Not only that but fb would then have info on browsing habits like Google, but coupled with their currently useless info they could make a killing and it would take them to the next level and put them in the same bracket as Google, Microsoft and Apple.

[BluBonnet]

Originally Posted by Maximus

My best guess is that Facebook are going to become one of the internet titans like Google and will begin to branch out of their core activities soon. They need money though which is why we saw them sell some some shares in the secondary markets. AFAIK the company doesn't run at a profit, but it does generate enough cash to keep going, which suggests to me that they are investing a lot of money in R&D.

Just how many shares has it sold "in secondary markets", would you say - especially given that they don't even plan to launch an IPO until 2012?

According to this story in the NYT, the earliest they would sell shares to the public would be April 2012. Also, the company actually does turn a profit: it posted $355 million in profit on $1.2 billion in revenue during the first nine months of 2010 (again, according to the same story).

http://dealbook.nytimes.com/2011/01/...rd-2012-i-p-o/

And you wonder how Internet rumors get started...

[JJ]

If you went to college between 2004-2008, you definitely have a Facebook. If not, you must've been some sort of social outcast, a pariah...anyone else is excused.

[SonOfArathorn]

Originally Posted by JJ

If you went to college between 2004-2008, you definitely have a Facebook. If not, you must've been some sort of social outcast, a pariah...anyone else is excused.

I went to college in the 90's mate, we all had pagers back then, haha!

[FREYMAX 3D]

I went to college in the 70's - we typed up letters on a typewriter and mailed them...

[jw]

Originally Posted by Darth Anakin

I really don't understand since it doesn't generate any revenue...maybe somebody could explain it to me in layman's terms. I get that it has potential and all of that but that doesn't mean it should be worth money right now.

Facebook generate millions, if not billions of dollars in advertising dollars. Its a marketers dream to have that information and they pay for it.

They make money from Advertising, much like most internet social forums

[jw]

Farmville is another draw/Source income.

Keeps the women busy here

[Maximus]

Originally Posted by BluBonnet

Just how many shares has it sold "in secondary markets", would you say - especially given that they don't even plan to launch an IPO until 2012?

Well that's the point of selling to secondary markets, they can find investors without requiring an IPO. From what I know they sold around $500m worth of shares to Goldman Sachs who will then sell it on to select investors.

According to this story in the NYT, the earliest they would sell shares to the public would be April 2012. Also, the company actually does turn a profit: it posted $355 million in profit on $1.2 billion in revenue during the first nine months of 2010 (again, according to the same story).

http://dealbook.nytimes.com/2011/01/...rd-2012-i-p-o/

And you wonder how Internet rumors get started...

Until we see properly filed accounts we won't know ho much money fb makes, that $355m figure strips out R&D spending I think. It's what I meant by cash generation, the business requires capital investment to grow so they will post a loss even though they are making money or they will go to outside investors.

Trust me, I know a thing or two about this. More than the NYTimes.

[MaCruz]

Originally Posted by jw

Farmville is another draw/Source income.

Keeps the women busy here

Yeah I know.

[,deeii]

Originally Posted by MaCruz

Myspace was the shiznit a few years back. I was on that site all the time. Now that it got old as far as status 24/7, I don't want to spend more than 2 mins on FB. I get the question from everyone, "why don't you add me as a friend" I tell them, BECAUSE I don't go on FB!

Hey MaCruz,

can you add me as a friend please? I'd love to have you on FB!

[MaCruz]

Originally Posted by ,deeii

Hey MaCruz,

can you add me as a friend please? I'd love to have you on FB!

Are you serious? If you have LeAnn on your FB, you'll find me and then you can add me.

I don't know how to search for friends.

[,deeii]

Originally Posted by MaCruz

Are you serious? If you have LeAnn on your FB, you'll find me and then you can add me.

I don't know how to search for friends.

No, I'm not serious.
More like, sarcastic!

[Chordata]

Originally Posted by Darth Anakin

I really don't understand since it doesn't generate any revenue...maybe somebody could explain it to me in layman's terms. I get that it has potential and all of that but that doesn't mean it should be worth money right now.

It generates revenue in the same way network TV shows do: advertising.