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Is Facebook’s valuation correct? You decide! [POLL]

February 1, 2012

With Facebook’s IPO imminent, much debate rages amongst my colleagues about its valuation.

Is a business with an advertising based revenue model really going to be sustainable, and will its revenues continue to grow at the pace that everyone thinks? If you’ve ever read this blog before, then you know that there’s a lot of work going into social commerce, which effectively is a way for businesses to reduce their advertising costs by ensuring that their communities recommend them by direct recommendation and via the social graph (ie people just like you also like these ‘recommended’ things). If social commerce does what I think it will, then it will slowly reduce the demand for advertising over time.

Is Facebook really worth $100 billion?

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