Whomever is in it at lower prices will obviously want to unload it at higher prices. With enough money behind it, even tulips can reach sky-high prices....
Didn't read the inevitable drivel after the 1st page from past-it, know-it-all hermit-trader pricks... But difference between Facebook & MySpace (or Friendster, AOL & others) is: ** Facebook is a PLATFORM ** Something that all tech companies aspire to. Something which most of the old, everything-new-is-useless mentality retards here fail to understand
Had to chime in here. I am in my 40s. I said I would never join Facebook. But then I noticed that people don't call each other any more. and like the person who wonder where everybody went, I joined Facebook. The response was incredible. People from my college days, from my fraternity, from my high school days, from the places I had lived, and from my job, all found me. In three weeks I had 300 friends. I realized that the world is on Facebook, and all that is left are the stragglers. I won't even discuss how many people play those Zynga games. I work in a small town, and almost ALL of them play Farmville. They are serious about it too. I think people who were born before the PC underestimate just what an integral part of life Facebook is to the Post-PC generation.
Now, all that said, traders must trade what they see, not what they think. For my system, I need a quarter of data for my metrics to be accurate. For others, their mileage may vary.
I remember at the height of the internet Bubble..There was a B2b company called Ventro...It had a market cap of 20 billion...It had about 15-20 million in revenue. Makes Facebook seem like a value stock by any standard.
\ So what your saying that there's a new paradigm and the old rules of valuing companies etc don't apply anymore? So facebook will be the first company to have a trillion dollar Market cap?
Philip N. Howard, an associate professor at the University of Washington, is the author of âThe Digital Origins of Dictatorship and Democracy: Information Technology and Political Islamâ. The opinions expressed are his own. The Day of Rage in Saudi Arabia was a tepid affair, and Libyan rebels have suffered strategic losses. Only two months ago, popular uprisings in Tunisia inspired Egyptians and others to take to the streets to demand political reform. Will the tough responses from Gadaffi and the Saudi government now discourage Arab conversations about democratic possibilities? It may seem like the dictators are ahead, but itâs only a temporary lead. Ben Ali ruled Tunisia for 20 years, Mubarak reigned in Egypt for 30 years, and Gadaffi has held Libya in a tight grip for 40 years. Yet their bravest challengers are 20- and 30-year-olds without ideological baggage, violent intentions or clear leaders. The groups that initiated and sustained protests have few meaningful experiences with public deliberation or voting, and little experience with successful protesting. These young activists are politically disciplined, pragmatic and collaborative. Where do young people who grow up in entrenched authoritarian regimes get political aspirations? How do they learn about political life in countries where faith and freedom coexist? The answer, for the most part, is online. And it is not just that digital media provided new tools for organizing protest and inspiring stories of success from Tunisia and Egypt. The important structural change in Middle East political life is not so much about digital ties between the West and the Arab street, but about connections between Arab streets. Research has demonstrated three clear democratizing effects of the Internet, especially among young people in the region: more individuals are using the Internet to openly discuss the interpretation of Islamic texts, more people are forming individuated political identities online and creating their own media, and more citizens are actively debating gender politics and pan-Islamic identity. Satellite television has fed a transnational Middle East identity for several decades. But it is only in the last decade that people have started transnational conversations about politics and shared grievances. Some experts thought the Internet was going to be a boon for radical voices and fundamentalist Islam. But it turns out that digital media more often push such extremists to the side, and bolster the networks of civil society groups over terrorist groups. Individuals learn that they can become sources of information, and that Dropbox accounts, Twitter, YouTube, Facebook, Google and a host of other tools provide ways for people to spread information beyond the reach of their despot. ...continued http://blogs.reuters.com/great-debate/2011/03/25/why-democracy-will-win/
Facebook's revenue potentials are the selling of virtual goods, consumer behaviour statistics and targeted advertising. They have cornered the social graph market just as google has cornered the search market. At some point in the future I can see their market cap being equal to google's. The only risk to their business model that I see is that people start to lose interest in social graphs.
Its a scam. You think anyone cares what beer I drink and who some idiots I socialize with? No marketer cares...