I found your entry interesting do I’ve added a Trackback to it on my weblog :)…

Zuckerberg should have taken the Google $2.3 bil and not listened to Peter Thiel, who personally believes the company is worth $8 bill. His paltry $12.7 million is now worth $1.65 bill. He should have taken the money and ran…now he’s going to tank with Zuckerberg before they get the IPO off the runway.

Facebook is a JOKE. It’s certainly worth a lot but nowhere near what many think.

Why? NO COMPETITIVE ADVANTAGE.

Internet users are SUPER FICKLE. The newness of Facebook will wear off and users will be flocking to some other new social communication app.

Facebook will certainly continue to add new features and we’ll have millions using it for many years to come, but nothing that will create BILLIONS in value.

MARK ZUCKERBERG = THE NEXT SHAWN FANNING

They are in some respects, similar to Yahoo!, they have tons of visitors/users but can’t monetize them effectively. They’re also hiring like banshees for a reason I can’t figure out. If they have something bigger they better release it soon….negative cash flow and poor monetization are big issues.

My feeling is that Mark Z. should have sold this crap a long time ago. Going nowhere fast while the little guys catch up and money goes out the door.

exactly..one point here is about their traffic that just dont justify it but what if they were working on something that will need those servers.
You know what I’m talking about

The message here is simple and the leak was clearly planned.

Facebook isn’t going to have a very good 2008. Because of their ‘odd’ partnership with Microsoft, they now have stock options priced at a discount to $15B — not very appealing to a savvy employee. Now, it looks like we’re about to head into a recession. Facebook probably knew their “bad” losses would leak out, causing their employee base to grow concerned.

So, what to do? Sure — let’s tell everyone we’re buying servers. They’ll all believe that cuz almost no one understands IT, etc.

Clever, but I’m not fooled. Facebook doesn’t have enough traffic to justify $50M in IT spending let alone $200M in spending.

You’ll see..they’ll release something major by the end of the year or probably in 2009..followed by an IPO !!

Planning to go public in 2009, Marc Zuckerberg needs to do something fast on the revenues streams in order to justify their huge valuation as well as the zooming headcount increase (shooting up 450 to 1000 in this year alone). Kara Swisher brings some…

These guys are cheeseballs. Can they be any more un-original.

agreed.
every software/web based company has some ridiculous p/e ratio. even apple is only at ~30 now and I believe and was around 60 or something only a couple years ago before iPod/macbook popularity.

Public valuations can be based on 2 elements: a factor on earnings; or perceived future value. Facebook could benefit from perceived value when they go to IPO, and that’s what many of these public co’s live by. and die by of course.

even Google has an outrageous price/earnings ratio of 45-50.

Techcrunch and Allthingsd are reporting that Mark Zuckerberg supposedly talked about Facebook’s financials in a all open conference call. This is coincidental timing since Google just reported that social networking ad inventory isn’t monetizing well…