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February 04, 2011

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xr

I would look at it in a different way because comparing FB with Google is comparing apples and oranges.

If we take the example of the most advanced social networks, ie asian gaming networks, the ARPU is around $10 per year. For the members, I would go for an ambitious target of 1 billion which would already imply a worldwide penetration rate north of 15%. Net margin in an investment phase of 30% would point me towards 40%, assuming FB will always have to spend money in developement and marketing to face growing competition. Consequently, we could be heading towards a stabilized net income of $4 billion. With limited growing perspective, the PE could not be above 10x which implies an end value of $40 billion for FB.

Anything above that number is just the glamour side you just described

Burberry UK

My mate physical activity is also football obviously most on my family customers appreciated it.

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