Do you think FB is overvalued? Sure it’s almost impossible to predict future FB earnings
Do you think FB is overvalued? Sure it’s almost impossible to predict future FB earnings –@MShengel
A lot of people also asked similar questions and included the phrase “are we in a bubble”.
The answer is Facebook is probably not overvalued (although it’s not necessarily undervalued either). It’s a market but not a bubble. Bubbles are very very rare. In Feb, 2000 we had an IPO bubble. We never had an Internet bubble. If we had an Internet bubble then we wouldn’t be seeing so many Internet companies now at all-time highs in the stock market. The dream of the Internet came true. It’s here! We all use it every day. And companies like Apple, Google, Facebook, Amazon, Ebay are all all-time highs in profits. So that’s not a bubble.
Looking at the Super Bowl commercials about half of the commercials didn’t even put their website URLs. They put their Facebook URLs instead. This tells me what corporate America is thinking. That more and more of our ad dollars are going to be diverted from other sources (TV, billboards, Google, etc) and moved onto Facebook to get direct engagement with our customers.
The worldwide ad market is $600 billion. Facebook will be getting a bigger chunk of that market than any other Internet company before it, including Google.
Imagine the entire Internet going public. That would be worth, obviously, billions. Facebook is like a mini-Internet. We haven’t even begun to see what business models they will evolve into. You might ask, what does Facebook have to do with the US dollar? Everything. We are moving towards a world where true competition and capitalism means that every currency is allowed to flourish and compete. Right now, in the US, the US dollar has a legal monopoly. This will eventually end with the rise of alternative currencies like bitcoin, Facebook credits, and even gold. There may end up being more transactions using Facebook Credits than transactions involving the US dollar? Not tomorrow, not next year, but eventually.
You might even ask, what does Facebook have to do with the decline of worldwide violence and wars? And the answer there is also: everything.
That’s why I will never say Facebook is overvalued. Even if I’m not a buyer at the IPO.
- How to Self-Publish a Bestseller: Publishing 3.0
- 7 Things Happen to You When You Are Completely Honest
- How to Deal With Crappy People
- 10 More Reasons You Need to Quit Your Job Right Now!
- The 100 Rules for Being an Entrepreneur
- 33 Unusual Tips to Being a Better Writer
- How to be THE LUCKIEST GUY ON THE PLANET in 4 Easy Steps
- 10 Unusual Things I Didn’t Know About Steve Jobs
- 8 Alternatives to College
- I’m Completely Humiliated by Yoga
- How I Screwed Yasser Arafat out of $ 2mm (and lost $ 100mm in the process)
- Who Is In Your Scene?
- Ep. 65: Dan Ariely: Dishonesty, Irrationality, and Money
- Ep 64 – Tucker Max: Surprise Announcement! Part 1
- 10 Things I Learned While Interviewing Tony Robbins About His New Book “Money”
- Ep. 62 – Tony Robbins: Money Is Just A Game
- Ep. 61 – Trip Adler: Overnight Success 7 Years in the Making
- Nothing Is Wrong With You
- Ep. 59 – Brian Koppelman Ruined My Life
- 21 or 22 Yet Even More Amazing Tips to Be a Better Writer
- Ep. 54 – Gabriel Weinberg: The Man Who is Fighting Google
- The Idea Matrix – What Changed Everyone’s Life After “Choose Yourself”
- Life is Like a Game. Here’s How You Master ANY Game
- Step By Step Guide to Make $10 Million And Then Totally Blow It
- Can You Do One Page a Day?
- The Secrets of Personal Finance
- 10 Things You Need to Know To Become a Great Leader