This is going to be a short post as I am at the Social Gaming Summit, but I wanted to share my feeling on why Facebook’s stock has been under pressure since the IPO as it is obviously having an effect on the social gaming ecosystem. This post is not a deep financial analysis, I will leave that to the “geniuses” on Wall Street. Instead, it is a simple observation.
Facebook is currently valued at slightly over $70 billion, after the declines since its IPO. In 2011, Facebook generated $3.7 billion in net revenue and net income of about $1 billion. Conversely, Disney currently has a market cap of slightly more than $79 billion, after several advances this week. So they have very comparable valuations. Continue reading “My thoughts on Facebook’s valuation”
The Business of Social Games and Casino 