Facebook Filing for IPO

Michal Lorenc's picture
Instructor
2/2/2012
Facebook, Social Media

Consider sharing it with your friends.

It's called the top of the bubble...or the next phase of the Internet.

Either way - it's a huge step for Facebook (the company) and entire Social Media scene.

You should review some of the articles on this topic - here's a good one, and another one, and another...

Or you can go straight to the source - and review their official S1 filing (with all the info on users, revenues, risks and more).

 What do you think - is Facebook worth $100billion?  More?  Less?

 

Comments & Feedback

Student

I think given the amount of advertising they conduct, how many users they have worldwide, and the name "Facebook" alone, I believe this company is worth 100 billion dollars.  They really have became a powerhouse brand and website, and I applaud their efforts to reach the top.

Student

I do believe that Facebook is worth $100 billion.  It brings many different things to the table that other social media sites cannot.  I also think that unless people transfer to a completely different site that offers the same thing, some version of facebook will always be around.  It was creatively thought through and well executed.

Student

I really not a person who have rich knowledge about stock or any other financial thing and I am not a heavy Facebook user as well. But I believe Facebook is worth $100 billion just because of the value of the users. Facebook connects millions people around the world and almost every big brand has utilized Facebook as the channel to communicate with their customers and the society. I have no idea about any economic benefits or risks about this issue. But I hope Facebook can grow as they planned and continue to do the good job.

Student
Check this article.
It seems that the future revenue of Facebook after its first public offerings may come from solomo=social+location+mobile. It is true that location-based service has gained a rapid use, but how to use LBS to make money should be a question for new marketers.
Student

Whether the Facebook increases or decreases from here on out will not determine it's success.  Facebook, connecting, and imformation is our way of life.  Although investors still have "huge expectations for Facebook's future", expectations can be found in social media everywhere.  Now is the growth of smaller social media sites.  The growth of small ideas, quotes, photos, inspiration, and tidbits is increasing and will soon sky-rocket as Facebook did.  It's turning from a personal standpoint, or personal Facebook page, to an interest standpoint, or interest Facebook page.  Pinterest is a perfect example of sharing little pieces of information easily and quickly that may interest your audience.

Student

As a finance major I look at this filing a little different from most. No offense meant, but many people simply comment on what they hear from media outlets such as: CNN, Fox News, and Bloomberg just to name a few. Who's actually read the prospectus took a deeper look into what Facebook is trying to offer. I've only read about 50 pages of it, but I'm simply reading the important things. Information pertaining to things like who has the most control, what avenues do FB plan to take in order to maintain popularity after growth tapers off, and the most important item being the financial statements of course. Is FB worth $100B, yes, every got damn penny of it! That's simply what's on the income statement. And a company of this magnitude filing an IPO, I'd HIGHLY doubt they would fib to the Securities and Exchange Commission. The question our professor should be asking: Will FB actually generate the projected $5B IPO? It's interesting and I doubt it. My projection is about $1.5-$2B under; but hey, Im just an analyst and even we're wrong sometimes. Only time will tell...

Student

I do think that Facebook is worth $100billion, but not at this current point in time.  In the next few years, if the company expands as they plan, Facebook will definitely be worth at least $100billion.  The New York Times article states, "Facebook, unlike any other site, has come to define the social era of the Web." I agree with this statement completely.  Facebook was the first social networking site to present data in the way that it did, which has brought Facebook millions of users.  If these users continue to use and support the company, than there is no doubt in my mind that Facebook will surpass the net value of $100billion.

Student

I think facebook is worth $100 billion. It has been taking off since it began and they don't seem to be slowing down. They know how to appeal to their target market and they keep things changing but not too drastically and most for the better so they don't lose their millions of users. Although Google+ is doing well I don't think they will replace facebook because what they are doing is something completely different. Our generation is constantly using media, in particular checking their facebook, I see it in class all the time whether it's on their laptops or their phones or just walking down the street, on the bus etc. It's not going away and the fact that it's so easily accessible also keeps facebook in the game. Everyone has a facebook, I even have a few friends who don't use a phone because they can connect better with people on facebook. They also are doing the right thing in helping other businesses advertise to the target market they want. The combination of everything they are doing and the path they are on is taking them to the $100 billion worth.

facebook

Student

I do believe Facebook is worth $100 billion. Facebook has connected over a billion people all over the world, and has created a portal for individuals to share their thoughts and ideas with others. It has brought families together. Mark Zuckerberg and his team at Facebook have truly created a new world on the internet since its establishment in a Harvard dorm room in 2004. The website's transition to a public company, and filing to sell shares on the stock market proves the company's worldwide popularity. While some people may believe that the founder and his website are too confident and are destined for ultimate failure, the website continues to thrive through its innovative changes. Facebook is a success story, who creates other success stories for its users; that is nothing you can put a price tag on.

Student

I could see how Facebook would be worth $100 billion.  It's been a revolutionary change to the whole meaning of social networks.  Sure, there was MySpace before and that is totally out of the picture now.  But Facebook has changed so much through personal use and professional use.  It allows people to connect to each other all around the world and allows companies to promote their brand, products, etc.  However, in my opinion, I feel like the value of Facebook is decreasing since it has new competition such as Twitter.  In a previous class, we watched an interview with Mark Zuckerberg, and I believe he sold Facebook at the right time.  He had it at it's highest thriving point.  Now all of the advancements that Facebook is trying to make is, to me, too much.  But it's understood on how the net worth of Facebook could easily exceed $100 billion.  Everyone is on it, people of all ages all over the world, and it has become a prime dependent of the Internet world.

Student

Facebook is deffinitely worth more than $100 billion dollars.  The company has influenced so much of how the world operates! With the protests from Iran to Syria! Facebook has changed the internet forvever! It invented the smartphone and how we communicate with each other. His idea of facebook itself really has no price tag...its priceless.  More people use facebook than there are people in the US. Zuckerberg's idea is genius and was a simple one at that.

Student

Is facebook worth $100billion? maybe.  Facebook is worth whatever the highest bidder is willing to pay for it.  Facebook took social networking and ran with it, doing what no other sites could do.  While certainly there are other sites, facebook is by far the giant (at least in the US, and one of the tops worldwide)  and therefore its hard to say what the company is "worth". Its value can be judged by the value of other sites, but since it was the first, best, or most popular way of doing many things, its hard to come up with an accurate comparison.  However, since sales of other monster wedsites have hit astronomical numbers, I would say that facebook judging its worth at this price seems like there is at least logic behind it.  They have most certainly build value in what they do, and people would certainly pay a lot of money to have what they have.  Its up to the market to decide whether $100billion is that price.

facebook dollar

Student

I was watching small clips of the movie "social network" and towards the end they talked about how much stocks each owner had. I thought Facebook went public a long time ago, but I guess I didn't really add it up.  Facebook isn't worth 100 billion, matter of fact, if you think about it how much is a website really worth. I mean it generates many and many of ads...but what would really happen if there where no facebook tomorrow? Now compare that to let's say General Motors, though it's apples and oranges, shutting down would mean really problems in the real world. I'm just say, webcity is just webcity.

Student

I remember the very start of Facebook, during the MySpace and Xanga era.  I saw it as this very private site that you could only get into upon invitation or once you have a college email account.  This kept me away for the most part.  I was eventually invited in while I was in high school.  I had about 10 friends for the first few years of being on FB.  Hitting college, I made about 250 friends, and currently I have 1000+.  What does this have to do with whether or not Facebook is worth the money?  I believe that is does.  Think about it.  You put down a single image on your page that is appealing and what happens?  It is most likely "liked" by a friend or two.  One of those friends probably has another 1000 friends or so that will see what he/ she just liked.  A simple message can spread like wild fire.  It is a massive place for advertisments to make it mark.  Being able to spread the word about information so easily is worth the money.  There are many ads on Facebook and there are many ways to use Facebook as advertising.  Sitting on your computer, you can be almost 99% sure someone will see an ad as opposed to a billboard.  

Student
Student

For years I read articles saying that Facebook should go public; that they're worth billions. The rumor mill got quiet for a while, but then last week it started back in full force. That rumor mill has to be right every once in a while, right?

I would have to say that I agree in thinking that Facebook is worth at least $100 billion. However, it is important to note that Facebook is an Internet company that simply provides a service through a platform. They do not produce content on their own. As such, their value increases simply by the value we place upon them. As users, we would probably be lost without Facebook; it's critical today, just like Google and Wikipedia. The more we value Facebook the more it will be worth, both in our minds and on paper. And as advertisers and researchers also value Facebook, in addition to all companies with a web presence, it is most certainly worth at least $100 billion.

I wouldn't necessarily say that I think it will stay at the top, or retain that worth, but for now and the foreseeable future, that's where it is. That is, at least until the next big thing comes along and crushes it (or management runs it down into the ground).

 

Student

I can definitely see Facebook's worth of $100 billion and a lot more in the future. It's growth is undeniable and the best possible example I can think of is seeing my distant relatives as well as aunts and uncles adding me on Facebook recently. I don't think half of their friends are even on Facebook but the fact that they took the initiative to start an account really depicts to me the attraction and impact this site has to offer. It allows the older generation to accept a new generation way of living and the idea of change and learn to socialize online as a means to keep in touch with their loved ones and learn new information that people are posting on their walls. Mark Zuckerberg connected people and transformed lives, in my opinion, a little bit too well!

Facebook

Student

I think it goes without saying $100billion is an overwhelming price, one that I can't completely rap my mind around.  When thinking about it though, and how much it has changed society, businesses, advertising and the interenet as we even know it, it's hard to put a price on something that has pretty much changed how we live day to day.  Even if you aren't a facebook user, in some way your life has been impacted by the ideas it has created and popularity it has gained.  With that being said, I believe it is worth every penny of that amount.  Even though other sites before facebook have had similar ideas, none of them compared to the features and forward progress that facebook continues to make, which is why, unlike others, it hasn't faded away.  Instead, it gets more popular every day. 

 

fbook

Student

That’s a tough question to answer. I look at Facebook and see one of the most successful Social Networking sites in existence, there is no doubt that it is highly valuable. In terms of social media connectivity, it’s one of the best in the world. But when concerns me is the lack of revenue to continue growth in the stock world for them. While there is so much hype in their public announcement, I see a disconnect within those interested. The site is free to the public, which means they don’t sell a specific product or service. While they are making boatloads of money on sponsors, ads, and networking opportunities, I don’t see the income sheet being able to support that bold $100 billion statement. There is also another possibility of another social networking site taking its place too (like it taking place of Myspace), even though I feel pretty settled. I predict a large rush to buy Facebook stock, but it will only be a matter of time before the price of individual stocks drop and the price of the company is justified. So no, I do not believe Facebook can live up to its $100 Billion dollar name for long.

Unjustified $100 Billion

Student

I can't say that I'm surprised Facebook is taking such a big step as filing for an IPO. It seems that social media is on the minds of almost everyone these days and Facebook is the leader of the pack. While other social media sites are on the rise, we still continue to use Facebook as our go-to media tool. Not everyone will understand the use of Twitter or Tumblr at first, but even Grandmothers are getting on Facebook these days. Is Facebook worth $1 million though? Maybe. I think it all depends on the way Mark Zuckerberg and the rest of the Facebook company decides to take this big step. Its a risky decision but I dont expect anything less from a company like Facebook.

Facebook World

Student

There's no doubt Facebook is worth $100 billion. The internet has revolved around this cutting-edge form of social networking, and we should absolutely give this outlet the kudos it deserves. Facebook is especially credible for its ability to 1-up Myspace and other previously up-and-coming networking sites to gain millions of worldwide users. It is the most powerful tool to connenct with people across the globe - heck, my cousins in Australia (who I havent seen since I was 6-years old) are in contact with me again because of Facebook! Our world would be a different place without this tool; “sharing,” “posting,” “liking,” “commenting” and “tagging” have become part of society’s daily life because of Facebook, and its changed the way we reach out to people in more ways than we can even comprehend anymore.

http://www.theladyprogrammer.com/plurk-twitter-facebook-and-pingfm/

Image source

Student

Facebook is certainly worth $100billion.  Facebook generates continuous visits and expansion.  Entering the public market is great for the company, as their platform has always been social and yes, public.  Facebook began as a channel for college students to mingle and share their daily experiences.  Since its initial lauch, the company has grown to a medium for everyone.  Parents, students, professionals, music groups, restaurants, and all other types of companies use Facebook to reach out to people.  Now Facebook is taking the opportunity to share itself with the public.  Finally the Facebook fans, stalkers, celebrities, and Mafia Wars fanatics can join in on the company they so passionately adore.

Student

At the beginning of the week, I saw the news the Facebook was going public (& actually posted a pretty great article to our resource tab). Initially I was shocked, but it probably was a great move on their part. Now, do I think that this company is worth 100billion dollars? Maybe. If you actually think about it, how much is 100 billion dollars? How much would Google be worth today? I would assume it is a lot more than 100 billion dollars. I do believe that (although Facebook is providing companies with access to marketing to millions of people worldwide) it is just another social media site. Look at Myspace 10 years ago - it was extremely successful and no one knew that it soon would be taken over by the ever so popular Facebook. Despite how many people are current users of Facebook, I think that the company is being a little too confident in their service.  There are plenty of other social media platforms that are on the rise such as Google +, iCloud, Twitter, etc. As an investor, I think that the Facebook IPO was a little too over-hyped and over-exaggerated. 

Student

Facebook is absolutely worth $100 billion dollars - especially after the $10 billion in cash they'll raise from the IPO is put to good use. The amount of unique users 845 million, and more importantly, 480-some million that use it DAILY. In other words, Facebook has half of the world's internet connected people, with the biggest percentage of non users in China. I'm positive that in terms of targeted and effective advertising, not to mention new ventures that will be well funded with the additional cash, that Facebook will not flame out like one time giants myspace.

Student

Mark Zuckerberg

 

Is Facebook worth $100 Billion??  I can't really say.  It is impressive that FB has 845 million users, myself included, and it seems only logical that that number will continue to grow.  I don't see Facebook going anywhere in the near future.  Not only do people use Facebook to "creep" on friends and family and to keep in contact with people who may be far away; Facebook is used to plan events, form groups, play games, and gain information on almost anything.  The only time I go more than a few days without checking my Facebook account is during MSU finals.  I can check facebook on my computer, my laptop, my phone, and my ipod.  I can mobile upload pictures and videos whenever I feel like it.  I can update my status, my location,  and my relationship status so that everyone knows what I am doing, where I am, and who I am with.  Facebook has become so integrated into my life (and I am sure millions of people can agree with me) that I can't picture my life without it... which is strange to think about.  I have become dependent on facebook - literally thousands of pictures are stored on my account that, if Facebook were to disappear, could be potentially lost forever.

I think the worth of Facebook depends on if it can continue to grow into the future.  Can it develop into even more areas of my life while still making me feel safe while I use it?  Can any other new social site replace Facebook?  I can't help but think back to the days of Myspace.com and think of how I no longer use that site.  At the same time I can't imagine a new internet site that could dominate my social interactions as much as Facebook.com.

I think Facebook will continue to do well if Mark Zuckerberg can keep his focus of serving people as a priority.  Too many drastic changes will cause Facebook to lose users.  I'm excited to see how Facebook will approach this new stage and how it will continue to develop!

Student

I am very surprised that Facebook could be worth that much. I understand the marketing capabilities, and the social aspect, which are both huge draws. But, I feel like Google + has more potential, or even if something apple came out with, or if they merged with twitter. My reasoning is Facebook is its own entity, where Google has so many aspects: search engine, google apps, phones, web browser, ect.  Combining all of these aspects, and products makes everything so much easier, and smoother.
Apple is doing a great job with icloud. It is either a matter of time until: Facebook tries to make a completely facebook intergrated phone (more so than this), or integrated OS, or until Google+ takes over.
I guess, I'm trying to say Facebook is not worth $100 billion dollars because there are other competitors that have more to offer (Google) as more than just a social media.

 

dislike button

Student

What makes the Facebook IPO so interesting is that they are one of the few public companies to revolve their earnings more around a concept than an actual product.  Though this may be the hallmark of their success, it also poses some interesting considerations that lead me to believe it isn't worth its valuation of $100 billion.  Facebook has expanded its capacity for use beyond simply connecting with friends by uploading pictures and commenting on them.  My point being, though, the ceiling is only so high for the expansion of Facebook.  Additionally, it is hard to deny the circle of life when it comes to technology and social media.  Though I believe Facebook will continue to be a social media force, it is only a matter of time before they are phased out. 

 

 

Student

There's no doubt that Facebook has leaded a revolution of our life. It changed the way people communicate and also introduced companies a new way of branding themselves. I believe for many normal users, especially college students, Facebook is not only a social network that used to communicate with friends or to share interesting content, it's becoming a life style or even a habit. Now Facebook has 89 million users, counting for 68.7% of the net-citizens worldwide. So definitely, it's worth a high value in this perspective. As for companies, Facebook along with other social networks has saved a large budget of promotional activities. For example, P&G has recently reduced its stafftrimmer when the company found Facebook was more effective than traditional advertising in promotions. Moreover, there's still space for companies to develop their Facebook pages since the interactivities between normal users and companies were still not enough. So I believe there's still space for Facebook to earn money from advertising.

facebook

Student

When talking with my friends recently about Facebook filing for IPO, I like to bring up this article from Mashable that shows 10 huge things worth less than Facebook. It's amazing to think that Facebook's dollar value is higher than the entire GDP of a country, or the entire Gulf War. $100 billion is an unfathomably high number. That's "billion", with a "b". I'm not too familiar with stocks and business values and that sort of thing, so all of this is new to me, but I can't imagine Facebook is worth that much. If it is, more power to them.

I think that, when most non-business people think of Facebook, they think of that thing that they spend all their time on when they probably should be doing other things. That online way to stalk their friends, talk about their interests, and share pics, video and music, and occassionally take care of their digital farms. They don't think of it so much as a business. So people, like me, who don't know too much of the business aspect of things think that $100 billion is a crazy number. We don't know how they came up with that number, what that number means, or anything like that. I also don't think a lot of us care, as long as it doesn't have an effect on our accounts. I think a lot of us care more about how stupid the new timeline is than we care about their worth and their filing for IPO.

Student

As indicated in the first article, Apple in 1980s, Netscape in 1995, iPhone in 2007 and Facebook now “did not just launch product. They launched platforms on which thousands or millions of others could make their own businesses. “  From this angle, I do think Facebook worth $ 100 billion, and even more.  We often talk about how social media have changed our way of thinking and behaving,. According to USA today, our planet—the earth, has 6,845,609,960 humans, 1,966,514,816 Internet users, and 517,760,460 Facebook users are using Facebook. In other words, “about 7% of the world’s humans are on Facebook.” (USA Today) what’s more, as mentioned before, the Facebook’s IPO is not only about Facebook as a product, more important is that it stands for the kickoff of a new era. 


Student

I'm honestly surprised that Facebook would be worth $100 billion. On one hand, they do have over 845 million users. This makes it a huge advertising and marketing tool for people who want to reach a huge audience, so the high number makes a great deal of sense.  But on the other hand, I'm hesitant to believe that they will stay current for the long haul. Sites like Xanga, LiveJournal, and Myspace were once considered hugely popular, too, and then they fell off the grid completely. I have a feeling that the people at Facebook are aware of this risk, and are doing things to prevent them from ever falling into the abyss that Myspace lives in today. After reading the articles about Facebook's IPO, and the impact it will have on the future of social era, the only thing I can definitely be sure of is that this is big news that people need to perk their ears up for, and pay attention to the future of social media.

Facebook_Mark_Zuckerberg

Student

Facebook is worth more than a 100 billion in my opinion. It's been thriving for such a long time (for a site) and continues to thrive. Facebook is an example of being ahead of the curve. This is a company thats always thinking ahead to the customers next issue before the customers themselves get there. Facebook is constantly improving and staying with the times. It's a very valuable source for tons of people. It's definately worth 100 billion, because more than 100 billion people count on it. Their filling for their IPO is a huge step, but just another example of staying ahead of the curve. I "Like".

Facebook Like

Student

facebook money hat

It's interesting to me that social media platforms such as facebook have such an advantage over other products.  When it comes down to the idea that you can use a platform, such as facebook, on any device no matter who makes it or what that device is; suddenly a whole new kind of world of possibilities opens up.  It's a totally new angle to make money, as opposed to products you have to purchase to use their specific platform. Based on this concept, to me, facebook is worth $100billion if not more than that.  If they have enough money to feed their employees lobster and braised beef on the daily, then they must be worth way more than we all think.  I think facebook is about to pull a magicians trick on all of us, we just get to sit and watch, and see what they pull out of their top-hat.

 

Student

I believe that facebook is in fact worth $100 billion. It is hard to comprehend one company being worth that much, but if you take a look at what facebook has done for social media it make is believable. Facebook, when I first started using it in 2007, was very different and not as widely used. Now it has become a way of life. People have made checking their facebook a daily ritual. I personally check facebook at least once a day. Just the amount of people that have joined facebook in the past five years has to alone make facebook worth $100 billion. But to add to facebook’s worth, think of the amount of ads facebook has incorporated. The targeted ads that appear on the right side of facebook have increased enormously in the past five years. Facebook is sure to get a lot of money from these ads. 

Student

Facebook is very interesting to me because how it has gotten so big, popularity and revenue wise.   It’s astonishing that Facebook makes $1 for 3$ of revenue, and the question is will they be able to sustain that profit margin.  When looking on how to evaluate Facebook’s worth, there are tons to consider, I don’t think each and every person will be able to full get their finger on it, just because they do have such large growth and the market will have an impact on what they will be worth in the future.  

 

Student

I think that Facebook is certainly worth $100 billion. How long will it be worth %100 billion? That's another question. With the filing of the IPO for Facebook, one of the biggest threats to the social networking site will be the ability to continue working in favor of the users of the site and not just stockholders. Thousands of companies have found demise in neglecting their users and initial, customer-facing objectives and instead turn to what Wall Street & shareholders want. I am interested to see how Facebook will be able to handle the demands that a Publically Traded Company must go through in terms of business practices and processes. This should be an interesting upcoming year.

Student

Its hard for me to understand how anything could be worth $100 billion, because that number seems so huge and foreign. But for what Facebook has done to revolutionize social media, the internet, and the way we access other's lives, I think it seems like a fitting pricetag. I'm still uncertain about what this means for the future of social media, but it seems like a huge deal since Rosoff compared it to Apple and Netscape's IPO's. These were both huge turning points in technology, and it seems right Facebook is following that path.

Student

I think FB worth $100 billion. With 845 million active users monthly and 482 million people daily, facebook really lead the competition among all kinds of social media in the world. Facebook’s IPO filing means the company announcing its intention to sell shares to the public. Facebook designed to meet the people’s needs, despite of the  great applications in Facebook, it improve how people connect to each other and businesses and the economy. But the cons are, the freedom of speech may have a negative effect on a country. The roit in London and “Occupy” activities worldwide was caused by communication in Facebook group and blackberry mobile. The loyal FB fans do not consider this fact as a risk towards the government for facebook in the future. Therefore, Facebook may worth $100 billion now but I’m not sure how long it will goes.

Student

Being an avid facebook addict since 2007, I believe that this social media outlet is more than just a website, it is a part of our culture. Facebook's stats are truly remarkable and unheard of. According to their registration statement, Facebook has 845 million monthly users, 2.7 billion likes/comments per day, 250 million photos uploaded per day and 100 billion friendships. This social media powerhouse has enormous influence all over the world and has brought about a whole new way to connect with people. Because of Facebook's influence on our society and culture, I believe that it is worth more than $100 billion. I think it would be nearly impossible for there to ever by another social media outlet that would ever have the impact that Facebook currently has on the world and the way we connect with others. The social media site is constantly making improvements and bringing about fresh, new ideas into Facebook. With their newest addition to Facebook, Timeline, it is hard to imagine how Facebook can continue to top itself, yet they still manage to do so. The creative time at Facebook is extremely innovative and is constantly improving the site, and for that reason I believe that Facebook is worth more than $100 billion.

 

Here is another interesting article on Facebook's IPO

Student

I currently do not think that Facebook is valued at $100billion dollars.  One of the largest social media platforms in the world, with an approximate 800 million users advertisers view an IPO as a huge opportunity.  However it is estimated that 40% of Facebook users access the website via apps on their mobile devices.  Seeing as the mobile application has no ad component, the social media platform does not generate any ad value from users of Facebook mobile.  While it is not know if mobile users only access their profiles from their blackberries , ipads and Android devices, this is where the value based on potential user reach could fail to pay off.  Making the necessary changes to allow for the success of high trafficked ads I feel would be a detrimental move to the dynamic of the user experience.   Leaving users who already struggle with the frequent changes and privacy issues to feel defeated by the changes to the “free” Facebook .  In the grand scheme of things, I do not think a new and public Facebook will be as successful as all of the hype is predicting.Facebook Apps

Student

There's no denying it's a huge deal that Facebook filed for IPO. I think they waited till just the right moment; however I definitely thought they would be worth more than $100 billion. The insight to demographic information Facebook allows marketers seems priceless, but I definitely thought it would have a higher price tag for that reason alone. However, as the one of the articles said, I think it will be quite interesting to see how Facebook continues to satisfy both its users and its advertisers while keeping in mind what each side wants: privacy vs. profits. 

 

Student

Facebook is a huge company and have transformed social media into something pretty much everyone uses everyday and taken it to the next level every year since it came out in 2004. I am not sure what is going to happen now that it is public though. Are there going to be drastic changes in the company in the next couple of years? I do not think Facebook is worth $100 billion though. It's just to much to think about. Apparently the United States gets around $500 billion more in dept each year. Is Facebook really worth 1/5 of America's debt from last year? I couldn't really predict how much Facebook is worth, but if it is worth that much then why not go public. 

Student

I definitely think that Facebook is worth more then $100 billion. Today in class alone we were talking about how more than 50% of Facebook users visit daily. That is about 400 million people worldwide go to Facebook everyday! Not only that, but the average Facebook user is on the site for an average 700 minutes a month-this according to Mr. Genthner. I also think that this site is unique because if someone posts an article, a "friend" may leave the site to go read it, but will then go back to comment on the originators post. On most other sites, only 50% return to the original site where they saw the article suggestion. Between the overall Facebook appeal and following plus the income from advertising I think that Facebook is easily worth more than $100 billion.

Student

To be honest, I didn't realize that Facebook wasn't already a publically traded company. I feel liek this is something that they would've done years ago when it started to boom in popularity. While $100 billion may seem excessive, if you take into account all of the different aspects of Facebook, it really doesn't seem too unrealistic. Brands, entertainment (musicans, television shows, movies), companies, schools, etc. rely on Facebook as their means to communicate. While there are a lot more platfroms emerging, Facebook seems to still be the pioneer.

Student

I think it is a smart move for Facebook to go public and that it is indeed worth $100 Billion. Last year alone they generated $4 Billion in rvenue and that is before going public. facebook is such a fast growing company that everyone wants to be a part of. There are many people that would want to buy stocks in Facebook and with all of this buzz surrounding Facebook going public, it might generate new advertisers and increase the value of the stock by everyone's curiousity alone. Is Facebook really worth $100 Billion? I think so.

Student

Facebook has become a monopoly.  Many students have mentioned that they don't believe Facebook is worth $100 billion, nor do they even need more money to begin with and are pretty well off as they are now.  I haven't read through all the comments, but a point I wanted to make is this: Companies and their profit and financial growth are usually directly proportional to their consumer.  The rise in Facebook's worth is clearly reflective of its increased use and reliance by so many people worldwide, for things nobody could have imagined a few years ago.  For some, it has taken their people's lives.  But the more people in society crave things like Facebook, it becomes less of a fad, less of a social media tool, and more and more into one's life through the computer.  Some blame Facebook, but its we the people, society, who craves such technology and when it becomes the driving force in our lives, Facebook is simply going to dig deeper and deeper.  What else can you expect?  That's their job.  Now while I agree that I don't think Facebook is worth $100 billion, I point out that the reason it is worth what it is is because of us, we the user, the we the consumer, we the advertiser, the marketer, the communicator, who give in to what Facebook is and what is has become.  But is that necessarily a bad thing?  No.  I'm just saying that if we are upset about it then we need not blame Facebook but instead look at the mirror. 

Student

Is Facebook worth $100 billion?  I believe that the only people who will directly benefit from this is its developers/employees.  Yes, I understand that they want to create a platform for users to be social with no matter what device they're using- but can't we already do that to a degree? As for its users- we all believe that Facebook is a great social media website.  We all have moments where we are addicted to looking at pictures/wall posts/profiles, or just avoiding studying for an exam.  Yet, i feel as if Facebook is just another website that is eventually going to die out.  Look at MySpace for example.  I just can't justify Facebook being a $100 billion company when it might just be an Internet fad.  Companies, such as Apple and Google, are worth huge amounts of money because they are developing concrete products and services that impact consumers.

Student

I think that Facebook is worth at least $100 billion.  It consumes a massive amount of time of a huge chunk of the world's population.  If it were to ever go away, I can't imagine the backlash there would be to get it back.  I think that Facebook will be extremely successful in raising funds from the IPO as it is a product that nearly everyone uses daily.  More people will be watching this IPO than any other in history in my opinion since people have their identity on Facebook.  A large percentage of its users will invest in it, even if they've never invested in anything else.  This will help Facebook to reach $100 billion in due time.  However, I think that when it does go public there will be a huge amount of new investors trying out a few different stocks which will boost the stock market as a whole.  I would suggest investing in multiple stocks prior to the Facebook release.

Student

I for sure believe Facebook is worth $100 billion. Everything we do in our lives is based around Facebook. We have access to it all day long on our laptops, ipads, and cell phones. Our generation has a hard time being satisfied with only doing one thing at a time, Facebook helps that problem with allowing you to watch TV while totally creep on what all of your friends are doing. Facebook has been evolving for years from just college students, to just young adults and teenagers, to now everybody! Businesses have even jumped on board with social media to get their product or service out in the world. I do believe however that everything in our time has a deadline and Facebooks will be approaching shortly. Things just aren't cool anymore when your parents are doing it too :/

Student

Facebook has become such a pivotal aspect of society, it's actually frightening. Class groups use it for communication, companies use it for advertising, and of course people use it to stay "in touch" with one another. At this point, Facebook doesn't seem to be going anywhere, perhaps making $100 billion a good number. Yet, didn't people say this at one point about MySpace? Social networking is a whole new ball field for our generation, and Facebook has managed to pin itself near the top of the list. Filing for IPO is in the best interest of the company, in contrast it is going to agitate a lot of users, but no matter what people will work through the advertisements to get their Facebook fix. I'm curious to see how this is going to effect not only people's use of the website, but also how many complaints will come across my news feed.

Michal Lorenc's picture
Instructor
2/2/2012
Facebook, Social Media