Friday, July 15, 2011

The FB Debate Continues

Just how do you value Facebook? 

My favorite quotes from the latest media attempt, courtesy of the WSJ.  And some unsolicited thoughts from yours truly:

"One chap (Jeff Yang) got to $140 billion... take us through how he got there." (Um, er, well, um... he picked a number?)

"It's a bottom's up analysis." (Doesn't he mean bottom up? Because otherwise it implies that Mr. Yang was drinking when he reached his lofty conclusion! Perhaps that does explain it better?!)

"There's a lot to say that Facebook is worth a lot of money, if everything goes right." (And if everything goes right, I'll be the next Warren Buffett!)

"That underlies the key risk here, which is we just don't have financials." 
(So please can someone tell me how you do a bottom up (or bottoms up) or any other type of valuation analysis on a company for which you have no financials?)

"They're probably quite profitable at this point."  (Other companies with $140 billion market values?  Toyota, BP, Vodafone, Well Fargo.   Also "quite profitable".)

"It's very easy to draw the curve up and to the right."  (You don't say.)

"Everything has to go perfectly for this thing to be worth $140 billion."  (All's well that ends well.)

Stay tuned.  $200 billion awaits!

Disclosure: Long VOD, which may actually be worth $200 billion.

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