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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