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I would of thought more people on this planet know more about star wars than they do facebook. Yet Facebook valued at 100bn (initialy) and Lucasfilm valued at

by Zenst 14y ago

I would of thought more people on this planet know more about star wars than they do facebook. Yet Facebook valued at 100bn (initialy) and Lucasfilm valued at 4bn and like many people the response was thats low. Lets look at it another way - do a google search for star wars and then facebook and notice the number of results: star wars: About 420,000,000 results (0.21 seconds) facebook: About 20,570,000,000 results (0.17 seconds) Now if you get (100/fb results)* star wars results you get a value of around 2 So with that you could say if facebook was overvalued at twice its value then you can say that lucasfilm is worth 4bn, or at least argue that as a price. Personaly I would of thought that had Lucasfilm ran a share sale, then the value would of been alot more, just from fans collecting a share certificate for there star wars collection alone. Now they can own a Disney share and feel all dirty I suppose somehow. Either way when you sell a company directly, I tend to see low ball prices in consumer valuations of the company. Now if you sell it as shares or are flavour of the month and can get silly offers, the prices seems to be over consumer valuations. Though even after this news, the share price has not changed much and still values Disney at around 90bn.

msprague 14y ago
Since when does popularity substantially determine share valuation?
- Zenst 14y ago
  Supply and demand and fashion have there cross overs. RIM share price has certainly been influenced by public opinion, depite some good sales/figures at times that counter the drops. Self forfilling prophecy that one. Facebook being another classic, share price based more upon popularity. New startups all the time get snapped up on initial fashion popularity. Nothing is clear cut, should be but it is not. If some stars suddendly endorse a product does it make the product better, may help sales may not but the share price will rise before those sales based upon expectations. So in many ways popularity be it directly or indirectly effects all share price valuations, markets are so volatile by being so twitch dynamicly fast that it is more a direct factor upon share price than it was in years past.

by Zenst 14y ago

msprague 14y ago

Since when does popularity substantially determine share valuation?

Zenst 14y ago
Supply and demand and fashion have there cross overs. RIM share price has certainly been influenced by public opinion, depite some good sales/figures at times that counter the drops. Self forfilling prophecy that one. Facebook being another classic, share price based more upon popularity. New startups all the time get snapped up on initial fashion popularity. Nothing is clear cut, should be but it is not. If some stars suddendly endorse a product does it make the product better, may help sales may not but the share price will rise before those sales based upon expectations. So in many ways popularity be it directly or indirectly effects all share price valuations, markets are so volatile by being so twitch dynamicly fast that it is more a direct factor upon share price than it was in years past.