Follow this link to the best perspective that I've read on the Facebook IPO. If Facebook shares were available on the Ghana Stock Exchange, I wouldn't buy the shares. Try as I may, I can't understand the business model and how they propose to generate enough earnings to justify such a huge valuation. I'm NOT suggesting that investing in Facebook won't be a good (or even great) investment; I just don't put invest in stuff that I don't understand. $100 billion for a firm that earns $1 billion, a 100x multiple? Hmm...that's making a huge bet on earnings potential (growth) of the firm.
Good luck to Mark Z and his crew anyway, they've worked very hard for this. They've certainly created something that ~1 billion people find useful.
Good luck to Mark Z and his crew anyway, they've worked very hard for this. They've certainly created something that ~1 billion people find useful.
