I'm Jon Olick. I make shiny things. I simplify.


I presented Sparse Voxel Octrees at Siggraph 2008.

Saturday, January 8, 2011

This is why Facebook is Valuable


The data plot above is google.com, the data plot below is facebook.com. Google has a market cap of 250 billion. What the investors are betting on, is that with all that juicy information they get from users, they can make uber targeted ads that people can't help but click. Basically achieving the same click-through ratio that searching enjoys, about 1 in every 100 people (sometimes better). Now, I'm not really sure if they can achieve that ratio or not, but I do know one thing -- I hardly use facebook anymore, but I have been using google consistently for 11 years. I don't think I'm alone in that. Maybe that doesn't matter? Maybe they figure the can get enough of the world hooked on facebook, it doesn't matter that they don't get everyone hooked on facebook. Who knows. But anyway, yes it does look like a good investment. The stock will likely triple after the IPO. I would suggest to buy it until the honeymoon period wears off, then sell like crazy.

1 comment:

  1. In retrospect, the initial IPO price was way too high. Always trust your gut in this case then.

    ReplyDelete