The Facebook IPO is not just long awaited, but one of the most interesting public offerings of our generation. Unlike the countless tech companies that came before it, Facebook doesn’t offer anything tangible; rather it’s simply a platform to help share our private information. This week however we’ve learned ultimately what the market valued this type of service at, and it’s a staggering $75 billion right out of the gate .
The fillings revealed that Facebook is still far behind advertising market leaders such as Google when it comes to monetizing the value of it’s users, but Wall Street as we know doesn’t only reward immediate financial performance, rather they consider what’s possible given the platform. Facebook made about $3.2 billion in advertising revenue last year, which while accounting for 85 percent of it’s total, is still only a small fraction of the $36.5 billion Google took in during the same period.
The big take away this week is that our personal information is worth a fortune in the right hands, and now that Facebook has finally gone public, you should expect them to start exploiting that value much more aggressively going forward. From the looks of it, they’ve only just scratched the surface.