How much is Facebook worth?
This article raises some important questions. Would you invest in Facebook if it were to be privately traded? What if it goes the way as mySpace or some other hospice-residing, has-been technology. I’m sure dot matrix printers were all the rage when they were introduced, but they had little staying power in a setting where technologies are constantly becoming outdated and replaced.
The example of dot matrix printers is a good one, as I argue the companies that manufactured dot matrix printers sold them like hot cakes, and then moved on to the next generation of printers and did fine financially - which would be my qualm about Facebook: It doesn’t manufacture anything; it isn’t a tangible item; and it doesn’t rally host any product or service (compared to a Web site with a function, such as TD Ameritrade or eBay or Craigslist or Travelocity, et al.).
Facebook is user-generated pages filled with information and pictures and movies and such - where is the value in Facebook - other than communication, networking and data-mining - and more importantly, does Facebook have staying power? What would Facebook have to do to stay relevant for a sustained amount of time?
