VOTE: Is Facebook worth $100 billion?

By By David Blight | 6 February 2012
 

Last week, Facebook confirmed its widely anticipated initial public offering, raising questions about the value of the social media giant.

The company's IPO papers revealed its revenue was US$3.7 billion in 2011, up from $US1.9 billion in 2010. The IPO is expected to value Facebook at $100 billion, which will see founder Mark Zuckerberg potentially taking $US28 billion.

While the company's revenues and profits are enormous, many analysts have suggested a $US100 billion price tag might be overstated.

The figure puts Facebook's value at 53% of Google, valued at $US190 billion, however Google's profits are ten times that of Facebook.

Meanwhile, the social media giant's revenues are phenomenal but slowing. The company saw 154% revenue growth between 2009 and 2010, but only 88% between 2010 and 2011.

In terms of profits, Facebook actually saw quarter-on-quarter profits fall during two quarters in 2011.

The massive sum raises the question, is Facebook worth $US100 billion?

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