Linked by Eugenia Loli on Sun 29th Oct 2006 05:58 UTC
Internet & Networking Less than three years after emerging from nowhere, the hot social networking website MySpace is on pace to be worth a whopping $15 billion in just three more years. Or is it? And is the much smaller Facebook really worth the $900 million or more Yahoo is reported to have offered for it? The problem, say Wharton experts, is a dearth of information -- including data on expected revenue generation and cost structure -- to plug into the standard valuation models.
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True value.....
by dnstest on Mon 30th Oct 2006 11:28 UTC
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Who's to say that any of this will be worth anything in a few years? Is it guaranteed they will stay on top, or will the next big thing come around? The only value of networking sites is their advertising potential, beyond that they have no value. Their success is due to a trend, not a stable and certain market demand. Not only that, there is nothing non-reproducable or exclusive to their product.

Google is the essense of Tech Boom/Tech Crash 2.0. Parts of their business model are going well, but others don't make any sense. The valuation of YouTube when they purchased it is a joke.

Computers are real commodities, so is steel, lumber and refrigerators. Internet access is a service, along with web-based enterprises that do not sell a physical product. For the life of me, I do not get how the stock market and investors place so much value on the intangible.

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