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Facebook Inc: The fastest growing company

30 Apr

Reports shows that internet companies are growing at a rapid rate. Dumisani Mahlangu investigates Facebook Inc.

It did not come as a surprise to learn that Mark Zuckerberg, the founder of facebook has won the most coveted price of “Time 2011” as  the 2011 Times most influential person. We use facebok for many different reasons ranging from marketing a product to connecting with friends,relatives and colleagues.

Facebook is the fastest growing company since 2004. In January 2011, facebook Inc was valued at $50 billion, and at the time of writing this post, it is worth $65 Billion. Its market valuation is twice that of internet giant Yahoo.Whether facebook Inc is ready to go public it is a debate that is discussed in the facebook inc’s boardroom. It seems that Mark Zurkerbeg  is still enjoying the idea of being a private CEO.

Time Value of Facebook:

As it nears the seventh anniversary of its founding in a residence of Harvard University, Facebook is more mature than google when it went public in 2004. At that time, google was worth $24 billion.  However, it is interesting to note that, by the time google turned seven, investors placed it to the value of $ 90 billion.

Time will tell. The $65 billion market valuation of facebook Inc, is twice more than that of Yahoo. It is  also worth more than  ebay-but still less than- Amazon. How does it fare when it’s being compared to that of google. In 2011, the market valuations of Google stands at about $ 200 billion.

Facebook has grown quickly as a business, even as it seeks to retain a startup culture, valuing innovation, hiring the smartest engineers from its neighbors and gobbling up small tech companies.

Why is facebook worth this much?

According to msnbc  facebook inc is valued to it’s current worth mainly because f the following factors.

  • It has over 500 million users, and these people share about 30 billion contents on the site.
  • Although facebook is free, their revenue is generated through the selling of highly targeted ads. It is to become a marketing mecca soonest.
  • It has the most smartest human capital, I mean it employs engineers, financial experts and computer scientists.
  • Large companies are investing in Facebook Inc, such as Microsoft, digital sky, Goldman Sach, to name but a few.
  • It generated $1.29 billion in online ad revenue in 2010.

Pictured detailed report  of  who owns facebook?

Facebook is owned by number of investors ranging from investors to musicians. The biggest shareholders in Facebook Inc are facebook staff and Mark Zuckerberg with the holding of 30 percent and 24 percent respectively.

Picture by Dumisani MAhlangu

Source: May issue of GQ Magazine, pg 28.

The establishment of facebook was indeed, a heavenly invention. For now, let me go like the likeable statuses on facebook. Connect with me!!!!!

Source: May issue of GQ South Africa, Time Magazine and MSNBC.COM.

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3 Comments

Posted by on April 30, 2011 in Business

 

Tags: , , ,

3 responses to “Facebook Inc: The fastest growing company

  1. Mahlwane Magale

    April 30, 2011 at 10:20 pm

    Facebook is booming now because social media is booming but in the long term these high growth rates will wither away, Google is good example of this, search is losing popularity as people start using social media to source information. Google now needs to innovate and come up with ways to prove to clients that search still has the capacity to attract people. The reality is that these high growth rates cannot be maintained in the long term unless these companies constantly innovate. It wouldn’t be a bad idea to buy stocks in some of these companies now and sell once they become stagnant.

     
    • Dumi-rocks

      May 1, 2011 at 1:31 pm

      You are very right Mr Mahlwane. These guys will need to continue being innovative. Look at what happened to MySpace.

      Just after updating this blog post, South African weekend newspaper, Sunday Times revealed that it is valued at $70 billion.

       

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