Why facebook worth so much

Facebook has developed eye-catching ads by combining this targeting with social-content infused ad creative. Viewers see the names and faces of friends who Like an advertised brand. Interactions between their friends and brands, such as Likes, app usage, and checkins, can become the ads themselves through Sponsored Stories. These trump, and are increasingly pulling spend away from more cookie-cutter display and search ads targeted through cookies and keywords.

Facebook has only begun to monetize through ads. The sidebars where ads primarily appear have been kept small and unobtrusive. Facebook has yet to show ads to its hundreds of millions of daily mobile users, but Sponsored Stories could show up there soon too.

Finally, it could one day create an ad network that allows other sites to pay to show logged-in Facebook users the same highly targeted social ads they see on Facebook.

But they're not. In fact, Facebook is expanding its demographic reach. While growth among young users has slowed but not gone negative , perhaps due to saturation, growth among adults over 50 is growing rapidly Pew American Life Project. Families are getting connected.

Facebook is becoming part of the fabric of modern life. And that's not what social networks are about. The more people real connections you are linked to on Facebook, the more difficult it is to leave.

That's why Facebook tries so hard and succeeds at getting people to connect with other users. Each friend is one more barb on the fish hook. No other site has this tripod of strengths: Massive reach, incredibly robust usage, and fish-hooked switching costs. Other popular sites have weakness in one or more of these areas that keep them out of Facebook's rare air, even if they're otherwise strong businesses.

Look at Groupon's low switching costs, for example. Or Twitter's much shorter dwell times. Or LinkedIn's smaller network. This tripod is what Facebook is resting on, and what it should be able to build on. It's why the company is so valuable today.

But what about tomorrow? It's not a sure thing the company will stay in this position forever, and it certainly won't if Zuckerberg's team lets its guard down after IPO.

Facebook has 2. Different from market capitalization, net worth is more concrete and not affected by fluctuating stock prices. Every day, get fresh ideas on how to save and make money and achieve your financial goals. Saverin renounced his U. Chris Hughes stays out of the spotlight, with little information available about his current projects. The company has long been controversial, particularly due to its laissez-faire attitude towards what people and organizations post on the site.

This reached a boiling point in , as Facebook finally took steps towards removing hate speech and false information from its site.

The top 10 are:. However, some analysts believe the stock is undervalued. Forty one out of 44 analysts reported by Yahoo! Finance rate Facebook a buy or strong buy. However, as with all investments, doing your own due diligence by researching a company is essential. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct.

Sponsored Links by Zergnet. Sign up for our daily newsletter for the latest financial news and trending topics. For our full Privacy Policy, click here. Advertiser Disclosure. The nearly one million-square-foot plant, which currently employs people, is expected to completely close before the end of Another electric startup, Rivian, has roared into the market with no sales but a higher valuation than Ford and GM. The recent spin-off of its managed infrastructure business into a company called Kyndryl NYSE: KD removes a noncore business from its balance sheet.

Also, management promised that the two companies would maintain the current combined dividend. If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for The potential for a partnership with former President Trump gave the mobile marketing platform a meteoric boost. What's next? Dow 30 35, Nasdaq 15, Russell 2, Crude Oil Gold 1, Silver CMC Crypto 1,