Last month a story stated that Facebook was valued at $75 billion on the so-called “second market.” This figure was repeated in a Slate post today. Even if Facebook’s true value is one tenth of that, it’s a lot of money.
Will someone please explain to me why it is worth so much? OK, I understand that Facebook has over 500 million active users who spend over 700 billion (yes, billion) minutes per month on the site. That is certainly a huge number of potential advertising targets.
But do you know anyone, anyone at all, who has ever clicked on Facebook ad on purpose? I don’t, nor do any of my Facebook friends. The ads are mostly quite cheesy. See screen capture below.
[Slightly off point but I can’t think of even one thing to do in Westchester County or North Jersey combined.]
I realize I am but a mere doctor and doctors are notoriously bad businessmen and investors. It’s likely I just don’t get it. But, in fact, I just don’t get it.