Is Facebook Worth $50 Billion?

It has been reported by Goldman Sachs that $50 billion is the total Facebook worth, which is a staggering figure. Almost everyone has their pointers near the Facebook login button at some point of the day. The popularity of this social networking website is undeniable. Ever since it came into existence, it has completely wooed people all over the world with its simplicity and efficiency. No other social networking site has ever been as addictive and appealing to people. But still, is the Facebook worth of $50 billion really true? Some points are discussed below.

To determine whether the Facebook worth is likely to be 50 billion dollars, one has to go through several points. Today, there are three main websites online that have been undeniably the most viewed and used websites in recent times. They are Google, Yahoo and Facebook. Out all these three, Facebook is the fastest growing one, not to mention that people are spending more time on Facebook than any other website. In 2010, Facebook made about $2 billion in revenue.

Now by comparing where Google was during its early stages, one will be able to get an idea of the real Facebook Worth. Almost a year after Google went public; it had made about $2 billion in revenue trailing twelve months. Today, it has a $200 billion market capitalization. Market capitalization is the measurement to denote the total value of the company in the stock exchange. So if Facebook goes public next year one can see that Facebook is actually growing faster than the rate at which Google was moving along before.

Another point that reinforces the value of Facebook worth is the mere fact that one in every four page views made in the United States is Facebook. Slowly Facebook is becoming the new home page. People all over the world press the Facebook login button and stay immersed in it every single day. Even though Google is the current king of the search ad market, Facebook is slowly inching in towards capturing the display ad market. Apart from the ad market scenario, Facebook has other sources of revenue too.

The fact that there are almost 500 million users can ensure that Facebook Worth is just and very possibly accurate in being valued at $50 billion. Even though it may problems in certain countries like China , it stands strong and proud. With more and more people getting into the social networking site, it is very much possible that the Facebook worth will rival Google in the future.