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Their growth rate in new users can't be expected to continue but their growth rate in revenue might be justified. Clearly Goldman thinks their plan for revenue
by yequalsx 16y ago
Their growth rate in new users can't be expected to continue but their growth rate in revenue might be justified. Clearly Goldman thinks their plan for revenue is quite good and they expect Facebook's revenue to greatly increase while maintaining a sufficient profit margin. I expect we've only seen the beginning of their revenue growth.
- redthrowaway 16y agoI don't think Goldman's investment can necessarily be taken as a sign of their confidence in facebook's financials, or its future ability to justify its $50B valuation. Rather, it should be taken as a sign of Goldman's confidence in their own ability to profit from the deal, both from the private $1.5B sale of stock, as well as its favoured position come facebook's inevitable IPO.
- danenania 16y agoExactly. Look no further than subprime if you doubt this. There is no group more expert at (knowingly) inflating a bubble for their own gain. And they take no risk because they get 0% loans from the Fed and are the definition of "too big to fail". This is dangerous behavior.