Facebook Valued at $50 Billion?

I just came across an article that I just had to share and talk about because it’s so relevant in today’s market.

I just reviewed an article about Facebook receiving $500 Million Dollars in funding based on a valuation of $50 Billion!

You can see the full article here: http://aol.it/eKiXxn

Here is what we don’t quite understand is HOW can this new valuation of Facebook be correct? We all know thatFacebook traffic is up and now more people check Facebook before they even check their own personal email. Ok we get that.

We also know that Facebook is expanding worldwide and in all reality, Facebook is rather “new” to the world. We know that “new” is a relative term for an online business. Facebook is picking up speed and with recent new Facebook partnerships, Facebook is poised to be the new mammoth revenue producing machine. As people join Facebook and become more engaged on the network, the revenue possibilities are endless. OK we get that too.

But what is the delta between people who just want to hang out on a social networking site to stay connected with friends and those who want to fully profit those intentions?

Facebook Valuation Rises to $50 Billion

Since Facebook collects personal data it does not share, does this mean they are holding the holy grail of customer information that is proprietary only to them? Facebook has access to information that marketing departments salivate over. Facebook does not SELL this information to anyone else however, they do hold the information that Facebook’s paid advertisers can leverage for some big targeted sales.

It really comes down to this, how long will Facebook continue to grow before company’s pillage personal information for mass advertisement? Will people still interact the way they do now as they are possibly flooded with advertisements? What we do know is this, with the growth that Facebook is seeing, they need and deserve revenue for the basic infrastructure to support its massive following.

What we are all interesting in knowing, is how do you evaluate a company like Facebook and can their value continue to grow. What have we learned from the Dot.com bust and sites like MySpace, Yahoo and AOL. All of these were mammoth sites until the next “Big Thing” came along and the values of these companies plummeted.

How do we know the same won’t happy with Facebook?

Check out the article for yourself: http://aol.it/eKiXxn

We would like to hear your thoughts and feedback on the Facebook valuation and this article. Please comment below and let us know your thoughts!

What value does Facebook have to you?

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