A sobering look at Facebook, says study

facebook 300x180 A sobering look at Facebook, says studyAs per the survey, it is reported that the people who have used Facebook, the social networking site from a long period show no sign of being bored from the site.

Facebook site found in 2004 by Mark Zuckerberg and now at this time, the company has 845 million active users who are enjoying its services of posting pictures, updating, commenting and sharing photos and random thoughts with their friends or friends of friends.

Due to having more popularity as compared to Twitter, Google, Yahoo and other social networking sites, the Company filed its initial public offering (IPO) prospectus with the Securities and Exchange Commission, seeking to raise $5 billion.

Many expected that Facebook will do the game in which a ring thrown over prize accompanying with Apple’s, Google’s and Amazon.com Inc’s stock debuts, pointing to its 843 million users.

The fact is that the company is much bigger and more profitable than other recent Internet debuts, but some investors seem that it is hard for themselves to recommend Facebook to their clients.

Facebook has become the world’s biggest social network with a $75 billion to $100 billion valuation in its IPO, the most anticipated stock offering from Silicon Valley since Google Inc went public in 2004.

At Granite Investment Advisors in New Hampshire, Chief Investment Officer Scott Schermerhorn said, “We had some clients call and once we step them through the numbers, they sober up. The valuation is 100 times earnings in a stock market that is trading at 12. ”

However the valuation of Apple Inc Company is equivalent to 25 times revenue and 102 times earnings and Google to 218 times earnings. And by seeing the Facebook’s valuation more than the Microsoft Corp, whose stock has largely traded between $20 and $30 in the past decade, it is expected that it will have to become the world’s first $700 billion company if it is to replicate the gain in Google‘s stock.

As per seeing the growth of the world’s most popular social networking site, investors really need to set aside emotion and invest with their heads.

The retail investors are still not sure to bought Facebook shares, but institutional investors have done the same via private pre-IPO exchanges like SharesPost and SecondMarket.

Facebook has the most potential and it seeking that it’s the next Google. The fact that make Facebook’s share more worthwhile is having strong emotional connections with users than other sites. It is said on average Facebook users can reach 156,569 other network users through friends of friends.

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