The upcoming flotation of the social networking site is gaining plenty of column inches but should you be backing its IPO? Here industry experts reveal whether it is really worth all the hype.
James Gautrey, Schroders Need convincing I will need a lot more convincing on the growth strategy before investing. At 25x 2011 sales (implied by the mooted $100bn valuation) there is a huge amount of growth baked in. Given a finite number of internet users (Facebook already has already signed up 50% of the 1.7 billion addressable market), the majority of future growth will need to come from increasing revenues per user (currently $5 per annum). This will entail establishing Facebook as a platform akin to Apple’s iTunes from which it can sell digital music, films and fu...
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