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Not in the grand scheme of things. Yahoo! Market Cap: 22B. Revenue: 6.5B. Employees: 13,900 Facebook valuation: 50B. Revenue: 2B. Employees: > 1,300 OK, so th
by Swannie 16y ago
Not in the grand scheme of things.
Yahoo! Market Cap: 22B. Revenue: 6.5B. Employees: 13,900
Facebook valuation: 50B. Revenue: 2B. Employees: > 1,300
OK, so the costs of running Facebook from a pure employee point of view are smaller than Yahoo. And their cost for traffic is certainly lower (as the YHOO numbers include revenue distributed to ad carriers).
But does the 2B revenue really justify a 50B valuation?
- borism 16y agoOK, so the costs of running Facebook from a pure employee point of view are smaller than Yahoo. I wouldn't be so sure...
- Swannie 16y agoYou'd hope so! I know most of Facebook would be classed as engineers, vs. a lot of Yahoo as sales, support, etc. But really? 1/10th the employees, you'd expect their salary bill would be less.
- borism 16y agodon't forget the stock options
- Swannie 16y agoIt might be an naive assumption, but aren't shares for options usually set aside relatively early in the process? Interesting comment, just provoked me to do a little research, as I had initially thought that stock options would be accounted as a future liability, and only a cost, at their strike price, when vested AND executed.