Thursday, December 3, 2009

If Facebook shares were traded on the open stock market...

This is an article I came upon today while doing some other research:

Facebook Must Woo Investors Before Any IPO


An IPO is the first time a stock is offered on the stock market for trading. Before an IPO, the company is considered "private." You can't log on to E-Trade and just randomly trade a private company.

Is Facebook worth a lot of money? Yes, obviously, being the #2 site on the Internet (at writing).

Can Facebook pull a lot of profit like the #1 site, Google?... ehhhh....

Okay, let's be serious. Google helps people find stuff. If I walk into a store, and someone helps me find a TV, they might get a commission, and I end up with a great product.

Facebook doesn't help people find things. It helps keep people updated on things. You know what used to keep people updated on things? The newspaper in the bin outside the store at the shopping center.

Which is going to make more money, something that updates you or something that helps you find something you're going to spend money on?

Facebook -can- be profitable for investors, but I really think this is about changing the world, and not about profit. Honestly, I think that's the way Facebook should stay.

Just my 2 cents.

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