The Facebook ends flat around its IPO price at Nasdaq after months long hype around it. There is so much talk going around the media houses that no one has any clue who to follow. The criticism lobby is huge. Somebody even mentioned that Facebook is like Ponzi scheme. Irrespective of such a big negative lobby stock never traded below its IPO price.
You believe them or not but few guys in casual hoods created history today. The listing broke many records today and you can read about them in any nook and corner newspaper. Today I would like to congratulate all Facebook team to reiterate the importance of conviction and value of human idea if implemented correctly (In this case $100 Billion). Could you ask more?
Now let’s talk about the valuation mathematics which says company doesn’t have any stable revenue model and even if we talk about now, when it reached probably it max user penetration it is trading 107 times last year’s earning. All logic seems true on the paper and maybe turns up right in future which no one can predict but we are missing an emotional variable here.
Facebook has been grown on passionate and emotional ideology. This Platform which brings smile on 900 million people faces every day and maybe more in future, no valuation seems justified. This is a platform which facilitated numerous birthday parties, marriage gatherings, flash mobs and in few cases facilitated even regime changes. Can you really put a price tag on it? I don't think so.
Facebook is a part of life for at least 500 million people who login daily on it and they all want it to be successful. I see this as not a high valuation of stock but a token of respect from every user for everyone who were involved in creation of this magnificent platform and shared it free of cost.
Facebook success not only showcases power of software technology in redefining humanity but also re-establish Silicon Valley position as hub of it. I see promoters of these giant Silicon Valley companies as superheroes of real world which keep many countries leadership on their toes. Let’s see what comes next…
1 comment:
Nice thought.. But I dont agree with this the one who visit to FB always wants to successful. FB is easy way to connect to people and thats why many people using FB services. It has nothing to do with their sucess or failure it is all about sharing your success and failure through one medium which is now FB.
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