The key question when trying to value Facebook’s stock is: can they find another business model that generates significantly more revenue per user without hurting the user experience?…
If they do that, the company is probably worth a lot more than the expected $100B IPO valuation. If they don’t, it’s probably worth a lot less.
That’s Chris Dixon.
I personally don’t like sponsored content in my feeds and Chris makes some good observations on those. GM isn’t convinced either.
My favorite test for a business’ viability is this: people only spend *real* money to make money. If your business isn’t better than your competitors at helping other people get rich, you don’t get rich.
I like Chris’ perspective, which is that Facebook is an incomplete product at the moment. And you can’t predict pivots.
Not Unreasonable 