iBankCoin
CAPS LOCK IS CRUISE CONTROL FOR AWESOME
Joined May 7, 2012
166 Blog Posts

Facebook Crackheads

(This was drafted Thursday night before the IPO.)

At $38/share FB will be valued at $100 Billion. That is 1/10th of ONE TRILLION DOLLARS.

Supposedly FB has ~1 Billion users. That means each user is worth $100 (at $38/share). If a click through on a FB ad is worth $10 to FB then each user would need to click on 10 ads (timeframe irrelevant for this example).

I believe in my 20+ years on the Internet (Yes, I had dial up AOL. Shut up.) I have clicked on less than 10 ads.

Someone please tell me how this does not end poorly. IMHO, it gets even worse because the boy CEO who blew $1 Billion on Instagram is still firmly in control.

The Social Media / also rans have similar issues. My one Internet pick is GOOG. I will write more about GOOG in another post.

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4 comments

  1. fake amish

    agreed. the VC asshats just blew the con as well. wtf is the street thinking?

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  2. zenhunter

    I was wondering about the same thing. FB already announced their revenues decrease before the IPO; perhaps advertisers are beginning to see their ad dollars to FB don’t generate more business? I guess we won’t be surprise when quarterly earning from FB starts to show declining revenues.

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  3. razorsedge

    also see twitter, great post.

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  4. en1gma

    @zenhunter, I started to write a reply but since it was so long I made it a new post. Check out http://ibankcoin.com/en1gma/2012/05/19/this-is-where-facebook-works/

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