Predicting Facebook’s future growth and valuation

Facebook CEO and founder Mark Zuckerberg - Image courtesy of telegraph.co.uk

This short article came out in Digiday. It discusses the future of Facebook:

Expectations for Facebook are reaching stratospheric proportions. TechCrunch reported that shares of the company on the secondary market are now trading at $34, giving the company an $84 billion implied valuation. It’s tricky to extrapolate valuations of companies that only sell a small sliver of its shares, but the nonetheless it’s clear that Facebook will have one of the largest initial public offerings in history when it goes that route. Michael Lazerow, CEO of Buddy Media, a platform for brands on Facebook, believes this is just the beginning. He says Facebook will become one of the most valuable companies in the world.

My reflection:

It is difficult to answer the question, “How big will Facebook become?” While Facebook has literally launched into outer space since first coming into fruition, many spectators say something new will come along to replace Facebook. At this point, I believe they are incorrect.

While society and the technology industry has proven that theory to be true, Facebook, Inc. has capitalized on their market and consistently upgrade their site and take on new en devours to keep their audience. I believe Facebook as a company will be around for a long long time and continue to grow in terms of monetary value. I believe that the $84 billion implied valuation is only a foothold for what’s to come.

As Facebook gains thousands of new users by the minutes, the company will expand, therefore increasing their ad revenue and overall value. It is true that Facebook as we know it today, may not exist tomorrow. But when I say this, all I mean is that the founders and executives of Facebook will recognize the changing social media environment and adapt to remain a global leader in the industry.

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