This is an interesting article that can be found in the New York Times. In July of 2010 Facebook reached 500 million users. That's super crazy. They have far surpassed other companies like MySpace and are rolling over companies like Yahoo. Facebook could become one of the biggest internet websites. They are even willing to take on Google. This isn't so far-fetched seeing how Facebook got its start and has been advantageous as heck all along the way.
Facebook got 500 million from Goldman Sachs in January of 2011. Obviously investors see Facebook as a company going places and worthy of such large amounts of loans. Zuckerberg, the owner of Facebook, even declined 1 billion from Yahoo to keep the company close, and so far has not put up stocks. But in 2012 Facebook will be reporting its financial results. The article said, "The company, based in Palo Alto, Calif., earned $355 million on $1.2 billion in revenue during the first nine months of 2010, according to a document prepared by Goldman for potential investors. That is up from $220 million in earnings on $770 million in sales in 2009."
I might not like Facebook all that much, but I'll give them props with figures like that.
http://topics.nytimes.com/top/news/business/companies/facebook_inc/index.html
Facebook definitely should get props for how they work. Unlike all the other networking sites, Facebook offers a more clean and organized way to stay in touch with people. It's amazing how they've made so much money in so little time. I personally don't have a facebook page anymore, but it could be one of the greatest sites invented so far.
ReplyDeleteYou are right, the value of Facebook is unreal. Besides the figures you give, with the Goldman Sacs investment the value of Facebook is now listed at 50 Billion. I’m not sure how Facebook can generate enough revenue today to merit that value, but I’m sure that in the future, as Facebook funnels more online traffic through its servers they will be worth that. If they can harness the data they have about the 500 million users they have and can create a search feature that can compete with Google, there is nothing holding them back from becoming the largest company in the world. Just as computers are all about the software they can run, so the Internet is about who can provide you with best experience.
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