Where does Facebook valuation come from? Is it the amount of subscribers that equals to advertising dollars? I thought we killed the theory behind advertising revenue stream in 2001-2002. No, it’s the demographic and personal information they have on each subscriber. Facebook documents your every move online. They know when you’re stalking the hot chick you keep sending friend request. There is no privacy and there is no need to force information out of subscribers. They will offer up their personal lives with ease. It happens everyday. Facebook is good for business, a company can buy subscribers information and then market their service or goods to these subscribers.
Overall, I still think Facebook, Linkedin, Groupon is a return to the 99-2000’s and overvalued companies. Myspace set the precedent.