Friday, February 4, 2011

DealBook: how Facebook could reach $ 125 billion

Signatures of Facebook’s first 200 employees on a framed poster.John g. Mabanglo/European Pressphoto AgencySignatures of first 200 employees of Facebook on a framed poster.

Now that Facebook has raised funding amounting to $ 1.5 billion round, led by Goldman Sachs, his new investors are waiting for their fortune to multiply.

While some critics remain skeptical that Facebook — which is said to have made approximately $ 2 billion in revenue last year — is worthy assessment of 50 billion dollars of turn, momentum is clearly on the side of the company.

Shares of Facebook are still soaring in the secondary market.The company's shares are trading at an implied valuation of 76 billion, according to Sharespost. For larger bulls of Facebook, the next number to contemplate is 100 billion dollars.

According to a new report by the research firm financial, which is certainly Trefis possible.

Trefis currently puts Facebook worth a modest (relatively) 45 billion dollars, but the company says there are four likely developments that could push the value of social networking to 125 billion dollars: a doubling of the ad revenue per page; page views increased by 50 percent; Facebook's share of the search market hits the 10 percent; a doubling of revenue game for each user.

The co-founder of Trefis, Cem Ozkaynak, says that Facebook is still far off the mark, but he says recent moves by the company are moving the needle on the user interaction.

"Is the introduction of more ads on its pages, changing the structure of the profile page to emphasize the photos that may lead to more page views and integrate Web search results in search results on Facebook, changes that improve the likelihood that share our scenarios on page views per user and market research are plausible," he said.

Not bad for a start-up that went from dorm room to billions of dollars funding rounds in seven years.

Have your theory?

Test the forecast on Trefis interactive Facebook graph below:


View the original article here

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