Is it worth buying shares in facebook?

[ntg]

Facebook is currently about '$1 profitable' per-profile. So yes, far-fetched.

You know that is irrelevant to their valuation. That's not how investors are valuing the business.

As far as valuations go, FB is valued the same as Amazon with respect to earnings, i.e. they both have the same P/E roughly (not that this metric means much, but it's a widely used one). Amazon is barely profitable as well, yet people feel it's a great investment - or greater than FB.

Swings and roundabouts.

 

[Burnsy2023]

Facebook is currently about '$1 profitable' per-profile. So yes, far-fetched.

You should really be looking at revenue rather than net profit for that comparison.

 

[Hatter The Mad]

You should really be looking at revenue rather than net profit for that comparison.

Not when the word in question is 'profitable'...

 

[Burnsy2023]

Not when the word in question is 'profitable'...

Yes it is, because you can't take into account of other capital investments.

 

[jimjamuk]

My wifes company has a FB Advertising account and yes we can choose to either use pay per click which costs us anywhere upward of 10p a click or a rate of 5p+ per 1000 impressions. And we get to specify the type of user we want to display it to.

Evidence suggest there are quite a few people who click on the adverts.

 

[Hatter The Mad]

Yes it is, because you can't take into account of other capital investments.

What!?

They were talking about the profit Facebook generates/might generate in the future, so I told them what their 'profitability' per-profile currently is. The has Y profiles, its profits are X. If you want the measure the business by profits per user profile, it is X/Y.

I'm not saying that is accurate or even a good way to measure anything. You are missing a lot of reply-context.

 

[arknor]

My wifes company has a FB Advertising account and yes we can choose to either use pay per click which costs us anywhere upward of 10p a click or a rate of 5p+ per 1000 impressions. And we get to specify the type of user we want to display it to.

Evidence suggest there are quite a few people who click on the adverts.

how many of them buy something?

 

[Burnsy2023]

What!?

They were talking about the profit Facebook generates/might generate in the future, so I told them what their 'profitability' per-profile currently is. The has Y profiles, its profits are X. If you want the measure the business by profits per user profile, it is X/Y.

I'm not saying that is accurate or even a good way to measure anything. You are missing a lot of reply-context.

What your suggesting is meaningless though. What we are trying to do is quantify the value of a Facebook profile, which what your suggesting doesn't even remotely achieve.

 

[dalin80]

Didn't realise facebook had adverts, must remember to kiss my ad-blocker tab one day.

 

[Hatter The Mad]

What your suggesting is meaningless though. What we are trying to do is quantify the value of a Facebook profile, which what your suggesting doesn't even remotely achieve.

Nor does $100 per profile (which is what I was responding to with another extreme ).

 

[Energizer Bunny]

Got down to $31 today. That is pretty ugly.

 

[StriderX]

Will someone look into their glass ball and predict Dot-com bubble: Series two?

 

[Strife212]

$31 atm.

 

[Cosimo]

$31 atm.

Any buyers here?

 

[Burnsy2023]

$31 atm.

I think it'll go down a bit more than that. My crystal ball says probably around $25.

 

[Burnsy2023]

Will someone look into their glass ball and predict Dot-com bubble: Series two?

One overvalued company does not make a technology market crash.

 

[the shadow]

I remember the lastminute.com crash

 

[Showboat]

I am far from being an industry expert, but i remember reading something about it being valued at 20 times it revenue or profit (told you i was no expert!), while Microsoft and google were valued at 11-14 times.
Facebook has all it's eggs in one basket, whereas MS and Google don't.
One bad of publicity about them selling your data and the company could crumble!
Crazy valuation, needs to come down some way yet.

 

[DAIR]

Looks as though the bubble has popped sooner than expected....

 

[Greebo]

Looks as though the bubble has popped sooner than expected....

Really? I thought most people, myself included, said it would crash within days?

I was actually surprised it didn't on the first day but it was been propped up.