Facebook stock price hits 1 billion users, here's how it hits $ 141 billion worth

Facebook now looks weak. The facebook stock is in the dumps. Wall Street, in his arms. Perhaps the social network is only for another decade, its users apathetic, his only reliable revenue, its stock hardly appreciate bungled along. That is one possible future for the company. But all that is in contradiction with the announcement today that Facebook has eclipsed 1 billion users. That's a big number, and that is the fuel for a much sunnier future for Facebook, one in which the company meets some of the outsized expectations imposed on it, in which there is the potential to meet that everyone so excited about it before just a few years . Facebook has shown that it can communicate an enormously disruptive force as people together. But it can show it can still interfere with advertising, where it is his money, search and e-commerce, where there was a strong interest and any number of other companies which could be his treasure trove of personal information on its hundreds of millions of members in handy . prove Optimistic Case for purchasing and operating that facebook stock price , which we do below, the idea is, it will not explode Facebook's income, such as Google's 12 years old when he dominant AdWords contextual debuted advertising, yet the company profit driver today . Instead, says this vision be at Facebook's growth, an innovative single solution, but a smattering of it does not depend. These are innovations that require deeper thinking with advertisers and other customers, and that consequently takes maybe five or ten years to begin to realize its potential as a business. If Facebook draws fully disrupt this potential, advertising and the creation of new companies to tap the current market value of their user data, it could triple its current market valuation in five years. Even if you do not buy facebook stock price into the rosy picture, there are fewer Future, which could add billions of dollars market capitalization Facebooks. If social advertising is disturbing, and Facebook could quintuple estimated $ 20 billion in revenue in five years, Sanford Bernstein. Graphics: Sanford Bernstein A significant long-term increase in Facebook stock price would hit-not just benefit from investor or co-founder Mark Zuckerberg yacht budget. If Facebook up to optimistic expectations about living by the power of social advertising, is interested angel investors and venture capitalists play other more social funding increase and pave the way for greater public offerings of other social start-ups (like saying We, Foursquare). And if Facebook successfully in diving into new business areas, it could kickstart new markets, it is assumed that the market for web searches, for example, owned by Google, but if Facebook successful it was, it would show that it is for space other innovators. Here's what would happen to Facebook and facebook stock price , just multiply its potential and its current $ 48 billion valuation. Many of the possible scenarios below are from research by Carlos Kirjner, Sanford Bernstein analyst who were pessimistic for Facebook shares shortly after it went the 30s forecast a $ 25/Aktie versus forecasts in the $ 40s and $ skilled labor among other analysts (FB now around $ 22). Kirjner remains quite bearish, suggesting that the best Facebook, a 20-percent to fuse some of the potential that has shot to the head down. But diving in his research of the optimist is a schedule of what is possible: Social advertising disrupts traditional online advertising: Facebook with facebook stock price brings in an estimated $ 4 billion in advertising revenue this year mainly due to the very good to the sale essentially traditional online display show; show can, location, age, gender, marital status, interests so closely - target - within a huge user base and, unlike many other sites, make sure that the show almost always hit their target audience. But the real money if you are a true believer in Facebook social advertising goes, the simply not be possible outside of a social network. For example, Facebook "sponsored stories" ads is only when one of your friends or mentioned the ad "likes". Big advertisers are as a group not yet be convinced that social show particularly effective. "How much Facebook would be worth," Kirjner asks, "when online show with a social component, either the targeting or creative, yield, attractive, measurable return on investment for brand advertisers?" Weighing the likelihood of Facebook advertising market situations (allowing 10 percent) (20 percent) and the potential new business areas through its user data to fully utilize Facebook, Sanford Bernstein thinks the company is likely worth about $ 68 billion. But it sees potential for a valuation as high as $ 141 billion (left column). Kirjner the answer is that disturbing social advertising could add $ 33 billion Facebook's valuation. It could quintuple Facebook's advertising revenue to $ 21 billion in five years, leaving the company with 20 percent of total spending on Internet display-show compared to only 4 percent now. Kirjner, I hasten to add I said, there are only a fifth chance Facebook will win the full $ 33 billion. And requires that Facebook use and grow more money you make mobile user can. We know that it happens, he tells me when we see a sustained acceleration of advertising revenue growth rate, probably from brand advertisers committing larger budgets pushed to Facebook. " Facebook is using its social graph to start new business: a way to Facebook business is to evaluate existing revenue sources and estimate how much they grow (or shrink) to consider. But it is also possible to play in addition to Facebook's data hoarding will be useful for unforeseen reasons. How do you assess the impact of the unexpected? Kirjner saw how others use similar company massive amounts of data, such as credit companies, agents and consumer data aggregators. Data about the habits of the 650 million consumers are companies worth about $ 37 billion as soon as you set aside their cash reserves. When you consider that Facebook will soon have 1 billion members, suggests a back of the envelope calculation, that companies could be on the basis of his data with a value of approximately $ 50 billion. Well, that is a very rough figure, Facebook does not (yet) have the kind of intimate financial information credit unions possess. On the optimistic side, however, has far more soft data on interests and relations of men; He also spends much less on data collection, and it is subject to (so far) less regulation. Kirjner is, as ever, be careful about the opportunities Facebook a chance one. Ten realizing the full potential of $ 50 billion of its data But he admits that these things are hard to judge. "We are skeptical," he writes, "that ... a month before Google publicly, was anyone could guess that Google would own everything like YouTube ... We estimate that today YouTube contributes $ 10 $ to 15 billion to Google's corporate value." Facebook has already begun to work with e-commerce noodling;. An expanded memory, the company could hypothetically take deep into competition with Amazon.com Then there is a search that Zuckerberg has said "Facebook is positioned quite unique, to answer the questions that people have." Facebook is a ubiquitous utility: Facebook's "like" buttons spread, Facebook Comments and Facebook user name to the wider World Wide Web successfully. And its social data is also used by some mobile apps like Spotify. But it has not yet a true benefit to society, important apps and websites, as Zuckerberg has publicly hoped. There just are not enough sites and apps Facebook data in a depth and sense way to the company to integrate a true utility. If Facebook, which can make happen, it's gravy. "This is the most interesting, the most ambitious and the least understood," says Kirjner me. It has the potential to "search and discovery allow the Internet, which is much better than what Google can do today." Kirjner put a dollar value on the possibility that Facebook is a utility, it is not easy to say yet enough data to assess the value and the likelihood of such a development. But just add the potential value on Facebook of two things: the incremental value of Facebook Social Ads and Facebook become disruptive start new companies based on user data. The total is an additional $ 85 billion in potential market valuation. Photographed with Facebook's projected net cash and the value of their current display-controlled businesses and land with a company potentially worth north of $ 141 billion. That's about three times Facebook's size today. Kirjner thinks that a number like $ 68 billion, a 40 percent premium over Facebook's valuation is now more realistic. (That's his target valuation for Facebook). Many investors would buy facebook stock price and take facebook . If you are a true believer in the power of social networks - and have a lot of patience - but you should be able to see much more room for growth.

Share on Google Plus

About akshay meshram

This is a short description in the author block about the author. You edit it by entering text in the "Biographical Info" field in the user admin panel.