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The Long Term of One Hundred Billion Facebook Still Has the Space of Appreciation

Posted On : Feb-06-2012 | seen (581) times | Article Word Count : 416 |

The Long Term of One Hundred Billion Facebook Still Has the Space of Appreciation
Facebook, who is possessing 850 million users worldwide, submitted listing documents to the U.S. Securities and Exchange Commission (SEC), immediately becoming the most talked about topic of the Internet community. Facebook’s target amount of the financing is about $ 5 billion, its valuation may be as high as 100 billion U.S. dollars.

Will Facebook continue to the Google growth or moderate growth? Are its one hundred billion valuations possible? How to evaluate? What is a reasonable direction for the future of its business model? The CEO of eCapital Wang Ran, with the “faith” rather than the technology or method, looked at this large the IPO.

Having more than 10 years career of international investment banking, Wang Ran founded eCapital with people in Beijing in 2000. Now, the company is active in domestic investment and investment banking sector, and its customers involve a number of media entertainment, Internet and other emerging industry.

Financial reporter: Is Facebook worthwhile to $ 100 billion? Will there be bubble in it?

Wang Ran: Facebook is company which has the opportunity to become epoch-making and revolutionary platform, the valuation of which depends on the length of investment horizons. If you have the investment horizon of one or two years, it is now a bit too expensive; if you have investment horizon of five to eight years, and then its space of appreciation still exists.

Financial reporter: The prospectus shows that advertising revenue is still Facebook's main source of income: advertising revenue of 2011 reached $ 3.154 billion, accounting for about 85%; payments and other fee income in the past two years have grown rapidly. How is the continuity of this business mode?

Wang Ran: As a platform with large flow of users, the core business model of Facebook is certainly is based on advertising, and advertising revenue accounting for nearly 85% is not the problem that Facebook is facing. In addition, under the premise of not infringing privacy, the charging mode of opening the user data to other users and services to provide more services, and then charging the fees may be naturally occurring.

Compared to other platforms, Facebook's strongest point is the relationship between the people inside it. On this platform, the extension of behavior related to the relationship between people is naturally the extension of the physical space. Thus, Facebook’s income in the future is more likely to come from mobile products, and mobile services will definitely surpass the traditional Internet business.

Article Source : http://www.articleseen.com/Article_The Long Term of One Hundred Billion Facebook Still Has the Space of Appreciation_144469.aspx

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Keywords : Facebook, appreciation, space, investment, advertising, platform, mode, income,

Category : Finance : Finance

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