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He is an angel investor in media and e-commerce companies. I wonder if he has invested (or plans to invest) in Facebook? Full disclosure would be nice. Next
by typicalrunt 15y ago
He is an angel investor in media and e-commerce companies.
I wonder if he has invested (or plans to invest) in Facebook? Full disclosure would be nice.
Next year, search advertising will be a $15 billion market in the U.S. alone, growing by 14 percent, according to eMarketer. And, if Facebook can capture half the share of that market that Google has today, it could easily add an extra $25 billion or even far more to its value.
Is it just me or does the math not add up. If search advertising is $15B next year, how can Facebook add $25B of value if it takes 50% of the market share? I assume he means globally (versus the $15B residing in the US alone), but with those kinds of numbers, he's got to back it up somehow otherwise he's just pulling them out of the air.
- erikpukinskis 15y agoIf Facebook were to get similar margins to Google, then they'd earn $2B in profit on $7.5B in revenues. $25B of value on $2B profit is a 12.5 P/E ratio, which is quite conservative, given search is still an emerging market, and quite strategic for them.