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I agree that this valuation is absurd and that Facebook will never really be worth this much. I also really like the 37signals guys and a lot of their opinions

by bherms 16y ago

I agree that this valuation is absurd and that Facebook will never really be worth this much. I also really like the 37signals guys and a lot of their opinions. HOWEVER, one thing that has been bugging me is the thought, espoused by 37signals, that not generating a large profit as a business is a bad thing. We're forgetting that these businesses that don't make huge profits are still employing large amounts of people, creating new jobs every day, and giving back to the community in many ways. Facebook has over 1000 employees. Granted they may not be making 33bil in profits (or even revenue), but that's pretty cool that they were able to create 1000 new jobs that didn't exist before, while also improving the lives of many people who use the service--eg, helping people keep in touch with friends and loved ones, helping people find old friends, etc. If they break even for the rest of the existence of the business, they're still doing pretty damn well IMO.

jbarham 16y ago
> If they break even for the rest of the existence of the business, they're still doing pretty damn well IMO. Presumably Facebook's investors are hoping for more than to merely "break even".
- bherms 16y ago
  From an investor standpoint it'd be disappointing to not get a big payoff, but 37signals sometimes frames it as a failure to not be a huge profit machine. They don't consider the positive repercussions of operating a sustainable business (jobs, quality of life, etc). As I said, I'd be more than happy to make an average salary and be responsible for creating jobs that allow others to support themselves and their families. I'd like to make killer profits too, but there's value in breaking even too.
  - Semiapies 16y ago
    Profit is a major component of sustainability. Businesses that put off making profit long enough tend to go poof much more often than become sustainable or profitable in the end.

by bherms 16y ago

jbarham 16y ago

> If they break even for the rest of the existence of the business, they're still doing pretty damn well IMO. Presumably Facebook's investors are hoping for more than to merely "break even".

bherms 16y ago
From an investor standpoint it'd be disappointing to not get a big payoff, but 37signals sometimes frames it as a failure to not be a huge profit machine. They don't consider the positive repercussions of operating a sustainable business (jobs, quality of life, etc). As I said, I'd be more than happy to make an average salary and be responsible for creating jobs that allow others to support themselves and their families. I'd like to make killer profits too, but there's value in breaking even too.
- Semiapies 16y ago
  Profit is a major component of sustainability. Businesses that put off making profit long enough tend to go poof much more often than become sustainable or profitable in the end.