4 ms·
Even assuming only DAUs would pay $1000/year (Facebook has 1.5 billion of them) and a P/S ratio of 1 (which is conservative), the company would be worth $1.5T.
by beefman 8y ago
Even assuming only DAUs would pay $1000/year (Facebook has 1.5 billion of them) and a P/S ratio of 1 (which is conservative), the company would be worth $1.5T.
Edit: But we should consider something like Metcalfe's law, as pointed out by berbec
https://news.ycombinator.com/item?id=18720468 https://news.ycombinator.com/item?id=18720468
- bonoboTP 8y agoDAU probably means "daily active user" here.
- _underflow_ 8y agoAppreciate the clarification. Almost picked it up from context, but was still a little curious (searching the internet for an contextual acronym is never efficient)
- Eridrus 8y agoCompanies cannot usually capture all the value they create.
- quadrangle 8y agoAnd yet companies like Facebook capture many orders of magnitude MORE value than they create.
- alanlamm 8y agoThe estimates in the study are for liberal arts college students (likely relatively Wwealthy vs US users as a whole), and if I’m not mistaken, US Facebook users have ARPU of as much as 10x other regions. If the WTP is also distributed like that, you could take your estima-te down by an order of magnitude even before network effects
- beefman 8y ago> But we should consider something like Metcalfe's law, as pointed out by berbec Giving, in this case, a value of $750B (at a P/S ratio of 1) https://www.wolframalpha.com/input/?i=Sum%5Bn+6.67e-7,+%7Bn,+0,+1.5e9%7D%5D https://www.wolframalpha.com/input/?i=Sum%5Bn+6.67e-7,+%7Bn,...