According to a recent Bloomberg Global Poll of investors, 69% say that Facebook is overvalued. This comes after the recent news of Goldman Sachs'
The recent poll raises concerns that there may be a bubble forming in the technology sector, especially as social-media companies like LinkedIn, Groupon, and Facebook begin to file or contemplate filing for IPOs this year. Overall, the poll showed that investors disagree with Goldman's valuation of Facebook. The valuation makes Facebook worth more than Yahoo! and eBay (Nasdaq EBAY). And the rise of Facebook's popularity should make people think twice about their opinion, as Facebook is now the third most visited website in the world.
Can Facebook be the next Google
Google's website is basically a gateway to the rest of the world. It allows communication with others as well as providing arguably the most efficient and effective search engine in the market. Google has recently expanded its horizons in the operating system and mobile platform universe and has proved to be increasingly successful. Google now hopes to rival Facebook in the social-networking space. As of now, Facebook has seen little competition, as News Corp's
Still, Facebook has a long road ahead to be as big as Google. It faces headwinds like continuously changing privacy issues and minimal financial information for analysts to track its actual value. On the contrary, the fact that the world is going digital and that e-commerce is still booming bodes well for the social networking giant. Facebook has more than 500 million members and is always adding more. Facebook is always coming up with ways to attract more members through innovation as well as ways to generate revenue, so expect Facebook to put up a fight against Google in its quest for internet domination.
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