Facebook will fade away like Hotmail.
Why I'm not buying Facebook
101–106 of 106 posts
Re: Why I'm not buying Facebook
#102Earlier quoted context omitted.
Myspace hasn't released revenue information for 2010 yet. It's likely that the ratio will change substantially in facebook's favor as their revenue has grown considerably (assuming facebook's revenue reporting is trustworthy). Nevertheless, Facebook's valuation is still shockingly inflated. Compared to Apple they have 1/6th the valuation at 1/30th the revenue, 1/4th the valuation at 1/12th the revenue of Google. It s…
"At 1/6th the valuation of Apple (which is widely considered to be a bit overvalued today as well)" I had also assumed that Apple was trading at a premium, before reading this. http://www.appleinsider.com/articles/11/01/03/verizon_iphone... "Reiner noted that Wall Street investors typically grant companies with 70 percent earnings per share growth a "premium valuation." But AAPL stock is valued at just 14 times its E…
Keep in mind, they also actually make physical objects that exist in reality.
Re: Why I'm not buying Facebook
#103Earlier quoted context omitted.
Not in the grand scheme of things. Yahoo! Market Cap: 22B. Revenue: 6.5B. Employees: 13,900 Facebook valuation: 50B. Revenue: 2B. Employees: > 1,300 OK, so the costs of running Facebook from a pure employee point of view are smaller than Yahoo. And their cost for traffic is certainly lower (as the YHOO numbers include revenue distributed to ad carriers). But does the 2B revenue really justify a 50B valuation?
OK, so the costs of running Facebook from a pure employee point of view are smaller than Yahoo. I wouldn't be so sure...
You'd hope so! I know most of Facebook would be classed as engineers, vs. a lot of Yahoo as sales, support, etc. But really? 1/10th the employees, you'd expect their salary bill would be less.
Re: Why I'm not buying Facebook
#104Earlier quoted context omitted.
So why would people want to be Facebook users? What value are they getting besides targeted ads? Erm... people like talking and interacting with their friends, and facebook makes that extremely easy? Ways it could make money in the future - since it could act as the online identity of a substantial portion of internet users, and gets the attention of a significant portion of those daily or weekly, there are a hell of…
If the noise gets unbearable, people will stop interacting on Facebook. E.g. every time I login I'm seeing lots of invites for stupid games and lots of my friends taking stupid quizzes/tests (like, "what does your birth month make you?", or other stupid shit like that). I've blocked as many apps as I could, I even deleted people from the friends list ... but it doesn't help, as the noise keeps getting more unbearable…
I'm near the low end of login frequency, probably, but it's usually the go-to place to organize parties and share photos. People also seem to like its messaging quite a bit.
The notifications are pretty easy to ignore nowadays, but my friends don't seem to be playing Farmville/Mafia Wars as much as they used to.
Re: Why I'm not buying Facebook
#105Earlier quoted context omitted.
OK, so the costs of running Facebook from a pure employee point of view are smaller than Yahoo. I wouldn't be so sure...
You'd hope so! I know most of Facebook would be classed as engineers, vs. a lot of Yahoo as sales, support, etc. But really? 1/10th the employees, you'd expect their salary bill would be less.
don't forget the stock options
Re: Why I'm not buying Facebook
#106Earlier quoted context omitted.
You'd hope so! I know most of Facebook would be classed as engineers, vs. a lot of Yahoo as sales, support, etc. But really? 1/10th the employees, you'd expect their salary bill would be less.
don't forget the stock options
It might be an naive assumption, but aren't shares for options usually set aside relatively early in the process?
Interesting comment, just provoked me to do a little research, as I had initially thought that stock options would be accounted as a future liability, and only a cost, at their strike price, when vested AND executed.