Skip to content

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?

Advertisements
Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: