Facebook valued at $50 Billion by Goldman Sachs!

35 replies
Do you guys think Facebook, the Internet social networking website is worth $50 Billion (significantly higher than the estimated $30 billion value of silver held in all the vaults of the world)? Really?

Maybe I just don't see how it could be worth $50 Billion... I'm probably stuck in the old school thinking from the 2000 tech stock bubble shock when it blew up.

Someone please enlighten me...

Cheers,
Dean
#$50 #billion #facebook #goldman #sachs #valued
  • Profile picture of the author Bruce Wedding
    OMG! Japan bombed Pearl Harbor!
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  • Profile picture of the author tpw
    Wasn't Goldman Sachs the company who had the $500 cookies recipe?
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  • Profile picture of the author Wayne-JJ
    Wow! That's a staggering figure!

    FB fan pages and ads seem to be the rage nowadays, wonder if they are really making THAT much money out of ads alone or do they monetize in other ways as well...
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  • Profile picture of the author tpw
    I know a Warrior spending $300k per month at FB for local targeted ads in only a few cities.

    So, I guess this value might could be legitimate.
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    • Profile picture of the author paulie888
      Originally Posted by tpw View Post

      I know a Warrior spending $300k per month at FB for local targeted ads in only a few cities.

      So, I guess this value might could be legitimate.
      Exactly Bill, they're probably valuing it in terms of the exposure that the platform gets and the expected/projected revenue from FB ads and other forms of monetization over the coming year.
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  • Profile picture of the author jwardz
    Ha! I wouldn't trust a thing Goldman Sachs has to say about anything having to do with finance. They had to pay a $550 million dollar fine for misleading investors. Just another inflated bubble so those on the inside can make their millions, until they pull out right before the bubble pops. Doesn't mean we can't take advantage of the ride. Just make sure you never put all you eggs in one basket. That goes for anything.
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    • Profile picture of the author jasonboom
      I'm just waiting for it to go up on Flippa.
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      • Profile picture of the author warriorkay
        Originally Posted by jasonboom View Post

        I'm just waiting for it to go up on Flippa.
        So that you can grab it for peanuts?

        ... not in your life,

        Kingsley
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    • Profile picture of the author Dean Shainin
      Originally Posted by jwardz View Post

      Ha! I wouldn't trust a thing Goldman Sachs has to say about anything having to do with finance. They had to pay a $550 million dollar fine for misleading investors. Just another inflated bubble so those on the inside can make their millions, until they pull out right before the bubble pops. Doesn't mean we can't take advantage of the ride. Just make sure you never put all you eggs in one basket. That goes for anything.
      You have a valid point. GS surely inflated the Facebook value to profit in one form or another. They will probably short Facebook.lol

      I've noticed JP Morgan has a class action law suite in regards to the manipulation of silver shorts.

      JP Morgan purchased huge short positions on silver future contracts to manipulate the price of silver lower on the futures market. The lawsuit essentially says that people that were not aware of the manipulation lost huge sums of money while JP Morgan and HSBC stole the money right out from under them.

      Cheers ~
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      • Profile picture of the author jwardz
        Originally Posted by Dean Shainin View Post

        You have a valid point. GS surely inflated the Facebook value to profit in one form or another. They will probably short Facebook.lol

        I've noticed JP Morgan has a class action law suite in regards to the manipulation of silver shorts.

        JP Morgan purchased huge short positions on silver future contracts to manipulate the price of silver lower on the futures market. The lawsuit essentially says that people that were not aware of the manipulation lost huge sums of money while JP Morgan and HSBC stole the money right out from under them.

        Cheers ~
        Good point. The JP Morgan saga reminds me of the Eddie Murphy movie Trading Places or should I say the movie reminds me of the JP Morgan shennigans. When there is big money to be had there is corruption and also very bored very rich with nothing better to do then play games with other people's money.
        Joan
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  • I think the $50-billion valuation is a little fluffed as Goldman is trying to bring investors in, so they've been liberal with the estimate.
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    • Profile picture of the author Dean Shainin
      Originally Posted by TheBrainchildGroup View Post

      I think the $50-billion valuation is a little fluffed as Goldman is trying to bring investors in, so they've been liberal with the estimate.
      And the winner is?
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  • Profile picture of the author affilorama-portal
    Valuation inflated or not, Facebook surely is one of the sites with the highest values on the net. Really wish I owned even just a tiny piece of it
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    • Profile picture of the author Devid Farah
      I think it's too exaggerated...
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    • Profile picture of the author Dean Shainin
      Originally Posted by affilorama-portal View Post

      Valuation inflated or not, Facebook surely is one of the sites with the highest values on the net. Really wish I owned even just a tiny piece of it
      Well, someday you might be able to own just a tiny piece of Facebook as this was just announced today...

      "SAN FRANCISCO (MarketWatch) -- Facebook Inc. intends to start publicly disclosing internal financial information or stage an initial public offering of its shares by April 2012, according to a report published Thursday."
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  • Profile picture of the author InternetWriter
    This is just the tip of the iceberg for facebook.
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    • Profile picture of the author Martin Luxton
      Dean,

      I had http://www.GoogleNewsProfitFlipDomai...fitFunnel.info
      for sale on Flippa for $5 but had no takers.

      I then hooked up with a well-known Wall Street financial institution and it's now on the market for $28.5 million. Their fees of $5.6 million are a bit steep but I'll still clear around $22,000,000.

      Not bad for a new site with only 48 unique visitors a month and income of $3.12 from Adsense.


      Martin
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      • Profile picture of the author Dean Shainin
        Originally Posted by Martin Luxton View Post

        Dean,

        I had www.GoogleNewsProfitFlipDomainsForZillionsAdsenseP rofitFunnel.info
        for sale on Flippa for $5 but had no takers.

        I then hooked up with a well-known Wall Street financial institution and it's now on the market for $28.5 million. Their fees of $5.6 million are a bit steep but I'll still clear around $22,000,000.

        Not bad for a new site with only 48 unique visitors a month and income of $3.12 from Adsense.


        Martin
        Maybe you can hook me up Martin. I've got a couple sites the well-known Wall Street financial institutions could bring to market... I've been missing out on the BIG money...
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  • Profile picture of the author bt
    Originally Posted by Dean Shainin View Post

    Do you guys think Facebook, the Internet social networking website is worth $50 Billion (significantly higher than the estimated $30 billion value of silver held in all the vaults of the world)? Really?

    Maybe I just don't see how it could be worth $50 Billion... I'm probably stuck in the old school thinking from the 2000 tech stock bubble shock when it blew up.

    Someone please enlighten me...

    Cheers,
    Dean
    I believe it. Can you imagine the money Facebook makes on selling ad space. I don't know if Facebook is worth 50 billion, but I am going to guess that it's close to that amount.
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  • Profile picture of the author Dennis Gaskill
    That's just crazy. $50 billion isn't even worth $50 billion anymore.
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    Just when you think you've got it all figured out, someone changes the rules.

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    • Profile picture of the author Dean Shainin
      Originally Posted by Dennis Gaskill View Post

      That's just crazy. $50 billion isn't even worth $50 billion anymore.
      You make a valid point Dennis. I think we will be O.K. as long as the dollar holds strong and we don't end up on the history charts like Zimbabwe and Germany below...

      New Hyperinflation Index (HHIZ) Puts Zimbabwe Inflation at 89.7 Sextillion Percent

      Zimbabwe Inflation
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      • Profile picture of the author Palusko
        Originally Posted by Dean Shainin View Post

        89.7 Sextillion Percent
        That kind of sounds like a tip you'd pay for a stripper.
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  • Profile picture of the author Instructor
    Yes I know a guy who spends about 5k per day in ads there too.
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  • Profile picture of the author Josh Anderson
    One of these days the internet will be reduced to just four non government sites.

    Facebook
    Groupon
    Youtube
    and Google

    Google will be used to search the other three.

    Everything else will become obsolete.

    I guess I am going to have to friend my wife someday soon.
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  • Profile picture of the author SusanPoole
    The value is morphing and will continue to fluctuate - what is important to us is that 1 million+ new people a day are on facebook - which is 1 out of 12 humans on the planet. Ask yourself: is there anything comparable? Then you know the answer: $50 Billion is the tip of the iceberg - let's go for a swim under water and get the rest of that iceberg which is just waiting to be discovered... Cheers, Susan Poole
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    SalesCashQueen
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  • Profile picture of the author Palusko
    I really dislike GS, so my opinion may be bias. However, GS and some russian investor just put half a billion dollars into FB, so the GS statement has to be taken with grain of salt. FB has the POTENTIAL to be valued that much, but I doubt it is at this time. It is still struggling to monetize all those users, and it will continue to have hard time with that. If people start feeling as being a focus group for marketers, FB may go the road MySpace did.
    GS will probably try to transfer FB to publicly traded company although Mark Zuckerberg said that FB will always remain private company. I personally would be very careful about GS, as they may be playing several games at the same time.
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    • Profile picture of the author Dean Shainin
      Originally Posted by Palusko View Post

      I really dislike GS, so my opinion may be bias. However, GS and some russian investor just put half a billion dollars into FB, so the GS statement has to be taken with grain of salt. FB has the POTENTIAL to be valued that much, but I doubt it is at this time. It is still struggling to monetize all those users, and it will continue to have hard time with that. If people start feeling as being a focus group for marketers, FB may go the road MySpace did.
      GS will probably try to transfer FB to publicly traded company although Mark Zuckerberg said that FB will always remain private company. I personally would be very careful about GS, as they may be playing several games at the same time.

      Your point is well taken in regards to GS playing several games. I don't remember the last time I logged into MySpace and feel there is always some new trend that takes over sites like MySpace and even Facebook if the typical users feel they are being used as a focus group for marketers as you mentioned in your reply...

      I thought I was having reflections and flashbacks from 1999 right before the tech bubble burst wide open when I made the OP.

      This just in today...


      It's Not Just Facebook: IPO Market Gets Its Mojo Back
      By Stephen Grocer


      "Suddenly it feels like 1999.

      LinkedIn reportedly is planning to go public this year. It likely won't be alone among the shiny, new social media start-ups. Twitter, Groupon and Zynga could well join LinkedIn in tapping the public markets this year. That list ignores Facebook, which won't go public this year but likely will in 2012".
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    • Profile picture of the author bgmacaw
      Originally Posted by Palusko View Post

      Mark Zuckerberg said that FB will always remain private company. I personally would be very careful about GS, as they may be playing several games at the same time.
      Zuckerberg might want to watch his back, given the reputation of his new Russian sugar daddy has for dealing with other troublesome billionaires.

      My son was killed by Kremlin agents says mother of missing oligarch | Mail Online

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  • Profile picture of the author 82ana
    Originally Posted by Dean Shainin View Post

    Do you guys think Facebook, the Internet social networking website is worth $50 Billion (significantly higher than the estimated $30 billion value of silver held in all the vaults of the world)? Really?

    Maybe I just don't see how it could be worth $50 Billion... I'm probably stuck in the old school thinking from the 2000 tech stock bubble shock when it blew up.

    Someone please enlighten me...

    Cheers,
    Dean
    Hi Dean,

    This is just inflation. Facebook went public this week and Goldman Sachs were selling the stocks.

    See the moral dilemma? (If you were an investment banker, you would see none.)

    I read an article in Huffington Post yesterday that due to the excessive volume of shares requested GS were closing the stocks for now. Some of the stock holders already promised stocks might also get less than the number of shares they expected. I guess the Sachs struck gold again but Facebook is in no way worth $50 bill.
    Its all just a marketing ploy. Perceived value rarely equals the real value.

    Hope that helps,
    S
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    • Profile picture of the author Dean Shainin
      Originally Posted by 82ana View Post

      Hi Dean,

      This is just inflation. Facebook went public this week and Goldman Sachs were selling the stocks.

      See the moral dilemma? (If you were an investment banker, you would see none.)

      I read an article in Huffington Post yesterday that due to the excessive volume of shares requested GS were closing the stocks for now. Some of the stock holders already promised stocks might also get less than the number of shares they expected. I guess the Sachs struck gold again but Facebook is in no way worth $50 bill.
      Its all just a marketing ploy. Perceived value rarely equals the real value.

      Hope that helps,
      S
      Ohh! Yes, that pesky thing called inflation....

      Thanks for getting me back to ground level reality and these pics really show the power of what can happen when things become too inflated and what it would look like. No worries.lol I noticed the dollar is up and holding strong today at 81.07 and unemployment at a 19 month low.. I'm really amazed that Gold can hold at around $1,350 and silver at around $28 with a strong dollar moving up... Happy days are here again.
      Inflation in America – What will hyperinflation look like? | Money Tip Central
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    • Profile picture of the author jasonboom
      Originally Posted by 82ana View Post

      Hi Dean,

      This is just inflation. Facebook went public this week and Goldman Sachs were selling the stocks.
      They did? I'm not finding any news stories saying they went public. I believe GS agreed to take them public or something to that effect. Correct me if I'm misinterpreting this news. I do want to jump on some FB shares out of the gate.
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      • Profile picture of the author Dean Shainin
        Originally Posted by jasonboom View Post

        They did? I'm not finding any news stories saying they went public. I believe GS agreed to take them public or something to that effect. Correct me if I'm misinterpreting this news. I do want to jump on some FB shares out of the gate.
        Facebook, won't go public this year but likely will in 2012. The poster was probably talking about Facebook going public with financial stats, etc. and what you mentioned in your post...
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  • Profile picture of the author theemperor
    Originally Posted by Dean Shainin View Post

    Do you guys think Facebook, the Internet social networking website is worth $50 Billion (significantly higher than the estimated $30 billion value of silver held in all the vaults of the world)? Really?

    Maybe I just don't see how it could be worth $50 Billion... I'm probably stuck in the old school thinking from the 2000 tech stock bubble shock when it blew up.

    Someone please enlighten me...

    Cheers,
    Dean
    Yes anyone can pull a figure out of their a**.... even Goldman Sachs.

    It's hard to tell what FB is worth. Essentially buying Facebook shares (if they existed on the exchange) is a punt on whether they can dominate commerce in the same way a Google has. Will there advertising become the "defacto" internet advertising like Google Adwords is today? Will they be able to branch in to other areas and grab the money?
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  • Profile picture of the author Dave Rodman
    Banned
    Let's see...They have data on millions of users that login everyday and tell them what they like, who they know, where they live, where they work, where they went to school, etc.

    They have over 500M users actively using facebook. If you value that at $100/user, you're up to $50B. Seems about right to me.
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    • Profile picture of the author Dean Shainin
      Originally Posted by Dave Rodman View Post

      Let's see...They have data on millions of users that login everyday and tell them what they like, who they know, where they live, where they work, where they went to school, etc.

      They have over 500M users actively using facebook. If you value that at $100/user, you're up to $50B. Seems about right to me.
      When you break it down like that Dave '$100 per user', the $50B is easier to digest... I've never purchased anything while using Facebook and I've asked several other people I know and they have not either but that does not mean they may not in the future... I just realized that I have subscribed to a couple lists, etc and got a couple free reports so even that is of value to those marketers. And as mentioned from other posters there are many people spending a whole lot of money on ads so there must be good conversion for those that really know how to use Facebook. Time to do a little more testing from the marketing point of view...
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