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Well, Google has essentially the same number of users and is traded at 190B capitalization. So, a Google user is worth over $300. As people spend more time on F

Well, Google has essentially the same number of users and is traded at 190B capitalization. So, a Google user is worth over $300. As people spend more time on FB then at Google, I can understand why FB user is seen as $100 asset.

organicgrant 16y ago
Well stated argument, but I think Google (at present) is much more diverse a company product-wise, and way better at monetization in terms of screen real estate and multi-modal revenue streams. (infrastructure, ad networks, functional products, etc) Virtual gifts aren't changing the world anytime soon.
anigbrowl 16y ago
A reasonable point, but Google has several years' worth of results under its belt. When the IPO was conducted I think the company was valued at about $25 billion; now it has net annual earnings about $6-7 billion - so while the P/E ratio is still high, at least it's based on actual numbers. I'm not saying FB couldn't be worth even more than Google - it's just that since they've never had to file earnings statements etc. yet, all such estimates are far more speculative. http://www.google-ipo.com/ http://www.google-ipo.com/ http://en.wikipedia.org/wiki/History_of_Google#Financing_and_initial_public_offering http://en.wikipedia.org/wiki/History_of_Google#Financing_and... http://blogs.wsj.com/digits/2010/03/04/investors-bet-on-price-of-facebook-ipo/ http://blogs.wsj.com/digits/2010/03/04/investors-bet-on-pric...
- 2arrs2ells 16y ago
  I imagine Goldman Sachs has access to numbers that are a lot less speculative than the ones we have access to.
  - DuncanIdaho 16y ago
    Or Goldman is so loaded with money that they have to put it somewhere - anywhere.
    - DuncanIdaho 16y ago
      Oh another (more probable?) possibility. Goldman invested into FB - so they can now act as marketmaker for their customers.
radicaldreamer 16y ago
Another thing that's included in Google's market cap is their technology and assets. The # of users might make up a portion of it, but it's not fair to just divide the market cap/users and come up with a figure that's easily comparable across companies.
deleted 16y ago
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organicgrant 16y ago

Well stated argument, but I think Google (at present) is much more diverse a company product-wise, and way better at monetization in terms of screen real estate and multi-modal revenue streams. (infrastructure, ad networks, functional products, etc) Virtual gifts aren't changing the world anytime soon.

anigbrowl 16y ago

A reasonable point, but Google has several years' worth of results under its belt. When the IPO was conducted I think the company was valued at about $25 billion; now it has net annual earnings about $6-7 billion - so while the P/E ratio is still high, at least it's based on actual numbers. I'm not saying FB couldn't be worth even more than Google - it's just that since they've never had to file earnings statements etc. yet, all such estimates are far more speculative. http://www.google-ipo.com/ http://www.google-ipo.com/ http://en.wikipedia.org/wiki/History_of_Google#Financing_and_initial_public_offering http://en.wikipedia.org/wiki/History_of_Google#Financing_and... http://blogs.wsj.com/digits/2010/03/04/investors-bet-on-price-of-facebook-ipo/ http://blogs.wsj.com/digits/2010/03/04/investors-bet-on-pric...

2arrs2ells 16y ago
I imagine Goldman Sachs has access to numbers that are a lot less speculative than the ones we have access to.
- DuncanIdaho 16y ago
  Or Goldman is so loaded with money that they have to put it somewhere - anywhere.
  - DuncanIdaho 16y ago
    Oh another (more probable?) possibility. Goldman invested into FB - so they can now act as marketmaker for their customers.

radicaldreamer 16y ago

Another thing that's included in Google's market cap is their technology and assets. The # of users might make up a portion of it, but it's not fair to just divide the market cap/users and come up with a figure that's easily comparable across companies.

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