Wow. Just… Wow: Facebook Hits Record $75 Billion Valuation On SecondMarket
Last week, in our weekly report on the insanely hot Facebook stock trading going on behind the scenes on SecondMarket, I wrote the following: “Do I hear $75 billion next week?” I was sort of kidding. But it looks like the joke is on me!
Sure enough, Facebook did hit a $75 billion valuation on SecondMarket this week, a new record. More
$75B eh? This is more than the total global online ad market. I guess they are betting on the new credits system, which uses an Apple App Store-like model, to account for significant revenue, but the math smells funny. Between this and Groupon's valuation it looks like we are in a mega-bubble.
Not only that but you are seeing a lot of craziness with startup / smaller company valuations. My favorite example was last month, Path reportedly turned down a $100 Million acquisition offer from G....
I think these investments come from a glut of money to invest (because of near zero interest rates) and (at least for now) rebounding economy.
Corporate profits are up, economic growth is up. I bet this bubble keeps on growing for at least a year, maybe more.
It's like the Act 221 effect for the rest of the world.
I agree with your theory about the catalyst and the likely period it will continue.