“Wanna lose some money?”
Easy. Buy Facebook. It’s said to be going public at 150 times earnings.
In order to justify the price, says our colleague, Chris Mayer, Facebook would have to sign up every human being on the planet…and a few extraterrestrials too.
The whole Internet complex is a “bubble that’s about to pop,” he says.
“It’s rumoured that Facebook’s IPO will value the company somewhere between $75 and $100 billion – about 150 times 2011 net income, 212 times free cash flow, and just shy of 27 times last year’s sales. Facebook’s sales have grown 77-fold since 2006, and its valuation based on private secondary markets has soared 92-fold during the same time.”
Wow! How do you beat that?
We tried to use Facebook. It just seemed like too much trouble. And what do you get out of it? Another way to keep up with your friends? That is, another way, in addition to phone, mail, SMS, email…and carrier pigeon. Seems like more than enough ways already.
We also tried LinkedIn. We signed up. But we could never figure out what the point is.
So…we apologise to all the many people who offered to make us a ‘friend’ or a ‘contact.’ I’m afraid we had to ignore them all. Not because we don’t want them as friends and contacts. But simply because we can’t keep up with the volume of contacts we have already.
Our advice to Dear Readers: Sell Facebook and LinkedIn…as soon as you get a chance. Turn off Facebook. Unplug yourself from LinkedIn.
Tune out. Turn off. Buy gold. Be happy.
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