 | stritar.net, written 9:14 CET |
The debate about the potential second technology bubble is all over the media. One of the first milestones that will determine the outcome of this story happened on friday, when Facebook went public. As opposed to other (smaller) web IPOs of the past years (LinkedIn, Groupon, Zynga, Yandex), the price on the first day stayed on the same level. This was to be expected, since Facebook received the valuation of 100 billion dollars. To put that in perspective, that's around half of Google's value, and about the same value as Amazon has. But Facebook makes 10 times less revenue than Google does, and its revenue growth is slowing down. Was Facebook valued too high? It seems so, and some analysts are already saying that most of the stocks were bought by institutional investors to keep the share price above 38$.
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