[citation][nom]faceback[/nom]lol, facebook isnt worth shit. Have you noticed a lot of ridiculous IPO "valuations" going around lately? Seems like this will become the new bubble, people making absurd valuations for stock on invisible company's, buying it all up like a bunch of idiots, then dumping it for the local businessmen and housewives who think they've struck rich, invest their life savings, go broke and collapse all over again. Same fad new color.[/citation]
You're an idiot.
Advertizers pay millions of dollars every month to advertize to the millions of users on facebook. That means facebook is making millions of dollars every month from thousands of advertizers.
The valuation right now may be much closer to right on than you think... but you are right about 1 thing... if everyone was to stop using facebook their advertizing revenew and thier stock would drop hard and fast. So the whole value of the company is based on it's advertizing ability, which means if people were to abandon facebook for a better version/different website the company wouldn't be worth jack in a split second because they don't have much for tangable assets and it would look like a bubble bursting. But right now, its not likely overvalued.
ABC
CBS
NBC
FOX
Google
All of the companies above are filthy rich. What do they do? advertize... Facebook and Google don't have the overhead costs it takes to make a TV show like paying actors for example. But at the same time Google and Facebook actually have more users than most TV shows get for viewers....