What makes Facebook worth 50 billion

[BruceWard]

Facebook collects significant marketing data on its 500 million users. How and when they use or sell it is will determine what the company is worth. I have not read the current terms of service and other legal docs for facebook but previous versions took ownership of everything posted to facebook. Once you post it they own it. The know where 500 million people live, who some of their friends are and what they are interested in. It is not difficult to connect the names of those 500 million people to street addresses. Some people even link the GPS in their phones to facebook who learns everywhere they go, where they shop, where relatives houses are, where they vacation, etc.

Personally I think it is scary.

 

[LMTC]

Can you say "Skynet"? I cautioned my children from way, way back about posting personal info (it NEVER goes away...someone will always have it in a database). SOIK who has a very nice job with a large investment company confirmed to me some time ago that they have people who are paid to scan the net for info on applicants (like pictures of an individual looking trashed holding a bong, etc.)....and this information was used in making decisions....not that a minor indication of being drunk or high in college would prevent a hiring, but it could be the difference between two applicants, and repeated postings of "hey man, I was really trashed" were pretty much a dis-qualifier. Imagine such info in the hands of a prosecutor, or a dotgov investigator. Or info about all your favorite places in the hands of a stalker. Way too much personal info available already without adding to it.

 

[riptides]

data freely and willingly being posted to it.

Until your a victim of identity theft, slander, financial crime or digital mis-information, a lot of people just don't get it.


Plus it really is a generational thing. Today "people" are just so much open about everything.

 

[dmccarty]

Can you say "Skynet"? I cautioned my children from way, way back about posting personal info (it NEVER goes away...someone will always have it in a database). SOIK who has a very nice job with a large investment company confirmed to me some time ago that they have people who are paid to scan the net for info on applicants (like pictures of an individual looking trashed holding a bong, etc.)....and this information was used in making decisions....not that a minor indication of being drunk or high in college would prevent a hiring, but it could be the difference between two applicants, and repeated postings of "hey man, I was really trashed" were pretty much a dis-qualifier. Imagine such info in the hands of a prosecutor, or a dotgov investigator. Or info about all your favorite places in the hands of a stalker. Way too much personal info available already without adding to it.

And some companies require the applicant to supply their Facebook or Myspace ID to check on what the person is doing. You can find out quite a bit of information on a person on the web very quickly. It is very scary.

Later,
Dan

 

[Jstpssng]

I joined FB on a whim while staying out of town a couple of years ago. Within a day I was on th phone with an old HS buddy I had lost track of when he joined the Navy 30 years ago. All of my "friends" there are either family, or people from my past.

Contrast this to TBN; I have never met any of the members, yet I spend more time here.

I am careful about what I post whereever I,m at. People on FB and other places tend to give out way too much information. I once got an e_mail from a woman I barely knew, which gave me names, addresses, phone #s, & other?personal information about her, her mother, her sisters, & sister-in-laws. When I pointed out how foolish that was she said "Oh, I meant to only send that to?my family."

 

[Sigarms]

It's not "worth" $50 billion. It's just "valued" at $50 billion.

Correct me if I'm wrong, but isn't something "valued" a bunch of money and then getting a loan for it was one aspect that got our country into some big financial trouble?

"Big Banking" making loans out on things that didn't have as much value as people originally thought? (funny about those people who got the loans).

Like my dad always told me, something is only worth what someone is willing to pay for it. Guess the question is if you can get a loan for it.

I am careful about what I post whereever I,m at. People on FB and other places tend to give out way too much information.

I see a guy during working hours checking out his facebook account, I know he's not going to last.

We terminated a guy who was stupid enough to post his nightly activities on his facebook page (long story, he had it coming though).

 

[RoyJackson]

Not a member of Facebook, doubt if I ever do join. In fact, I can't recall ever visiting the Facebook site.
As far as value...remember Myspace? That was the hot ticket a couple years ago...now it's pretty much kaput. That's quite likely the future of Facebook too. However, there'll be some people making a lot of money and a lot of people losing a lot of money if they invest in this (my opinion only).
Fads come and go...and in the Info Age, they come and go quite quickly...

 

[JDgreen227]

Not a member of Facebook, doubt if I ever do join. In fact, I can't recall ever visiting the Facebook site.
As far as value...remember Myspace? That was the hot ticket a couple years ago...now it's pretty much kaput. That's quite likely the future of Facebook too. However, there'll be some people making a lot of money and a lot of people losing a lot of money if they invest in this (my opinion only).
Fads come and go...and in the Info Age, they come and go quite quickly...

VERY WELL STATED !!! :thumbsup:

 

[jinman]

Not a member of Facebook, doubt if I ever do join. In fact, I can't recall ever visiting the Facebook site.
As far as value...remember Myspace? That was the hot ticket a couple years ago...now it's pretty much kaput. That's quite likely the future of Facebook too. However, there'll be some people making a lot of money and a lot of people losing a lot of money if they invest in this (my opinion only).
Fads come and go...and in the Info Age, they come and go quite quickly...

Yep! Just like video games. Those things have certainly come and gone quickly.

Methinks Myspace died due to Facebook's success. I also don't think there are a lot of investors being pursued. The company is privately held and making big money. There's no board of directors nor public scrutiny to deal with because it is privately held. Mark Zuckerberg seems to be an entrepreneur in the mold of Michael Dell and/or Bill Gates (or Muhammad Chisti ). You can't buy stock in Facebook nor TBN because it isn't on the stock market. Like any company, it's value is in its size, growth record and potential, and capitalization. To say that it's just a quick trend or fad that will fade is like saying high school reunions will soon become a thing of the past.

Just because I never understood what anyone liked about the game of Doom back in 1993 when it came out, I certainly would not have said it was a fad because I watched loads of coworkers taking all their break and lunchtimes playing it on our company network. Not only is Doom still around, but violent games have flourished despite many who make good arguments against them. It would seem that parents can't control their childrens' appetite for these games. Facebook not only seems to appeal to the younger crowd, but also to many middle aged grandmoms who talk endlessly about their grandchildren, their churches, or charities. The strength of Facebook is that it allows you to build your online community based on what is your choice. You can't get that at the local movie theater, mall, or garden center.

 

[RoyJackson]

Yep! Just like video games. Those things have certainly come and gone quickly.

Yeah, Id Games (Doom and Quake series...great games!!) is still around...so is Valve (Half Life) and a few others, but most have come and gone.

Facebook? Who knows? I just know fads come and go...some might stick around for a few years, some a "flash in the pan". A 50 Billion dollar fad this year might be a loser in a year or so (when the next "Myspace" or "Facebook" arrives).
For savvy investors, Facebook could be a good investment if they're good enough to know when to get out.

BTW, I met my wife in an internet chat (remember Prodigy?) about 16 years ago, so it's not like I'm a net newbie.