The economic value of Facebook is a little less than people thought in the beginning of the week, but still an awful lot.
Adam Ozimek, Contributor to Forbes Tech, debates the harsh reaction to Facebook’s valuation troubles after their recent IPO.
The relevant number here is not how much the perceptions of Facebook’s value changed over the week, but current value of the company. Ross judges Facebook as not making “that much money”, and that “Twitter is not the Ford Motor Company; Google is not General Electric“. And technically he’s correct, as G.E. has a market value of $203 billion, and Google’s is $193 billion. So Google isn’t quite G.E., but it’s actually very close. Furthermore, Google’s value is nearly five times Ford’s paltry $40 billion. So Facebook is actually worth twice as much as Ford, and more than Ford and GM combined. Contra Ross, the takeaway here is that the economic value of Facebook is a little less than people thought in the beginning of the week, but still an awful lot.