I was just reading about the news about the social networking site Facebook and how Microsoft has purchased a 1.6 percent stake in the company for about $240 million. Apparently Facebook is valued at about $15 billion.
Iâ€™m just reading the reactions from some people and a lot of casual observers think it is a crazy number indeed. Iâ€™ve talked to someone before who actually had some knowledge of the effectiveness in advertising within that site and apparently it is a very good way for a company to target a specific audience that will buy from you. In that sense, it is an extremely valuable site.
These types of company value estimates always makes me wonder on just how long it can keep its momentum going. I guess those Google stocks are an example of that.