Category linkedin

Let’s Face(book) it, this time it is different

No it’s not !!!

Here we go again. Goldman Sachs drags up the mindless euphoria of the 1999 Internet bubble and makes a small investment in Facebook which indicates a valuation of USD 50bn. This is 25 times sales. When Google was valued at USD 50bn it had sales of USD 3.2bn, compared to Facebook’s USD 2bn, and a viable strategy to grow those sales rapidly.

And Facebook?

“Facebook is becoming like the telephone system,” according to a “the daily beast” commentator on Bloomberg, apparently justifying the stretched valuation.

Well here at Vox Sapiens we see this as a ridiculous overvaluation for several reasons. Read more

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