So how Facebook is worth more than AMD?

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KingGheedora

Diamond Member
Jun 24, 2006
3,248
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If MS has exclusive advertising rights, does that mean all ad revenue goes to MS? And either way, since most of the profitability of facebook is in the advertisements, MS pretty much owns the part of the company that makes money. I guess MS gets a cut of ad revenues, but has control over over the ad sales and advertisement technologies. It still seems overpriced.
 

0roo0roo

No Lifer
Sep 21, 2002
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i dunno, they just handle the banner ads.
i don't think they get all that much, if face book is so hot they only chose ms over google because ms probably gave them a sweet deal.
 
Sep 29, 2004
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Who cares, both are in quickly evolving industries. Because of this, you can not predict future earnings and cash flows just 5 years out. If you can not do this, how can you determine that one is worth more than the other?

 

Throckmorton

Lifer
Aug 23, 2007
16,830
3
0
Wow.. All the anti-facebook comments are ridiculous. They're probably from people who missed the boat and graduated from college before it took off, and therefore don't have any friends who use it. Facebook made real social networking possible unless you consider getting porn spam on Myspace to be networking.
 

imported_Lothar

Diamond Member
Aug 10, 2006
4,559
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Originally posted by: Throckmorton
Wow.. All the anti-facebook comments are ridiculous. They're probably from people who missed the boat and graduated from college before it took off, and therefore don't have any friends who use it. Facebook made real social networking possible unless you consider getting porn spam on Myspace to be networking.

If me not choosing to invest in faddish companies, industries, or trends while looking for firms with conservative accounting procedures and sustainable competitive advantages makes me an anti-facebook supporter, then so be it.
 

TanisHalfElven

Diamond Member
Jun 29, 2001
3,520
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Originally posted by: LeadMagnet
Originally posted by: yamadakun
You didn't know pics of young females drinking in parties is worth more than circuits and transistors? :confused:

You need to look at Google's $165B market cap

you mean the same maket cap that was brought about by people searching for and buying pics of females drinking in parties....
 

BrownTown

Diamond Member
Dec 1, 2005
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Originally posted by: Lothar
Originally posted by: Throckmorton
Wow.. All the anti-facebook comments are ridiculous. They're probably from people who missed the boat and graduated from college before it took off, and therefore don't have any friends who use it. Facebook made real social networking possible unless you consider getting porn spam on Myspace to be networking.

If me not choosing to invest in faddish companies, industries, or trends while looking for firms with conservative accounting procedures and sustainable competitive advantages makes me an anti-facebook supporter, then so be it.

The fact of the matter is that Facebook gives you all those things for FREE, so its not like they are pulling in Billions of dollars in membership dues, its all advertiers and marketing and such. And that means that in order to make money they have to convince ad people that their users actually go out and buy stuff they see on Facebook, you talk of how great Facebook is, is it great enough for you to buy something just because you see its Ad on Facebook? As for missing the boat, I am a senior in college, I have a Facebook page, I see friends of mine spend hours a say on it, I am FULLY aware of how great an influence it has on MILLIONS of people.

Think of it this way, to make 1 Billion is revenue you need 100,000,000 users each spending $10, thats a LOT of users spending money and I Really doubt that Facebook convinces that many people to make purchases. Perhaps the real problem is those of ya'll who are younger don't remember the LAST tech bubble when there were a bunch of companies everyone though were the absolute SH|T and to die for and then one day they all went down the crapper.
 

thomsbrain

Lifer
Dec 4, 2001
18,148
1
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Originally posted by: warmodder
Facebook makes plenty in advertising revenue. It also captures the always illusive teenager demograph--that makes it worth plenty.

Sure, for the next six months until they all jump on a new fad site.

OP, as someone mentioned, "worth" is what people are willing to pay for something. It is a fluid concept, which is why stock prices change every day even though companies only post their profits a few times a year. And those who want to profit are wise to buy things that are currently worth little, and will eventually be worth more. I'd be hard pressed to think of a worse long-term investment than Facebook.
 

xeemzor

Platinum Member
Mar 27, 2005
2,599
1
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Originally posted by: thomsbrain
Originally posted by: warmodder
Facebook makes plenty in advertising revenue. It also captures the always illusive teenager demograph--that makes it worth plenty.

Sure, for the next six months until they all jump on a new fad site.

OP, as someone mentioned, "worth" is what people are willing to pay for something. It is a fluid concept, which is why stock prices change every day even though companies only post their profits a few times a year. And those who want to profit are wise to buy things that are currently worth little, and will eventually be worth more. I'd be hard pressed to think of a worse long-term investment than Facebook.

I can, Ford or GM.