How can Facebook be worth so much money?
Question asked by: mrquestion
Asked on: 31 Mar 2008
This is a very good question!
In general web sites like this get massive hype and PR and therefore this drives their value up before they've made any real profits.
The answer in general would seem to come from the size of the advertising opportunity, with so many using such sites there must be lots of clicks on adverts.
Also potential brand expansion such as starting to sell or charge for value added services, but really much of the valuation of an online company is to do with perception and market sentiment as much as actual value.
By: knowitall
Replied at: 31 Mar 2008
Average rating for this answer is 4 / 5
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