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Try this: FB market cap ~170B .75B users (EDIT: originally quoted FB 1.2B users, but that is the total count and WhatsApp quotes active users) --> market cap
by sheetjs 13y ago
Try this:
FB market cap ~170B
.75B users (EDIT: originally quoted FB 1.2B users, but that is the total count and WhatsApp quotes active users)
--> market cap implies roughly $225 per active user.
In that light, 40/AU is cheap. Even if you assume 50% overlap, 80/AU is still a deal compared to how the market values FB users
- nwh 13y agoI was using active users as a metric in my parent comment, using the same measure Facebook has 750M active users for a cost of $227USD per user. [0]: http://investor.fb.com/releasedetail.cfm?ReleaseID=821954 http://investor.fb.com/releasedetail.cfm?ReleaseID=821954
- sheetjs 13y agoThat only strengthens my argument: market values at ~225 / active user
- higherpurpose 13y agoAnd how many decades will Facebook need to make that money from its users? How many decades will it need to make it from Whatsapp?
- alex_young 13y agoFacebook made $2.14 / user in Q4 2013 [0]. That means they need more than 26 years to return that value. Or they need to find a way to increase revenue greatly without alienating users too much... [0] http://files.shareholder.com/downloads/AMDA-NJ5DZ/2971107785x0x721748/be75c513-b84a-486d-a838-25cdc79c6a16/FB_Q413EarningsSlidesFINAL.pdf http://files.shareholder.com/downloads/AMDA-NJ5DZ/2971107785... (page 12)
- spiantino 13y ago1.2B is monthly active, 750 is daily active. FB doesn't publish just registered users.
- adventured 13y agoExcept Facebook is now generating a serious quarterly profit, which contributes massively to their underlying valuation. There's no hope of WhatsApp ever justifying this purchase price, not even remotely close. Facebook shareholders just got screwed massively. This deal will be written down in a big way. Zuckerberg threw a dart at the board out of desperation.
- samstave 13y agoZuck: http://i.imgur.com/GoA3NSp.jpg http://i.imgur.com/GoA3NSp.jpg