Facebook has exceeded all predicted profits as reports say it’s on track to make $2 billion this year alone, revaluing the company at a staggering $100 billion or more.
A mere four months ago, analysts valued the site at around $49 billion as Goldman Sachs and Digital Sky Technologies invested in the social networking giant. In the months following, the site was unofficially revalued at $62 billion and later $80 billion as the site sold 100,000 shares.
Those familiar with the situation told the Wall Street Journal that based on continual profits, Facebook is indeed worth much more than a mere $50 billion, the number that Facebook released four months ago.
The Wall Street Journal reported that it may be difficult to give the site an exact valuation mostly because much of the market depends on the economic climate when the site goes public.
In December 2010 Goldman Sachs invested $500 million in Facebook and sold an additional $1 billion in shares to its non-US clients. Facebook has only officially admitted the $50 billion value around four months ago when it raised $1.5 billion. At that time, the site had no plans to get funding and planned to continue its organic growth and expansion.
With last month’s stock prices at $32.00 a share, a private-market transaction of 100,000 shares set the site’s value at around $80 billion. A month prior to that valuation, the site was valued at $65 billion and around three months ago, the site was valued at $52 billion. The extreme growth of the social networking monster shows it has the power to reach and possibly exceed the $100 billion mark.
If the number is indeed true, the $100 billion (or more) valuation would make Facebook one of the largest technology companies, surpassing the likes of Amazon.com and Cisco Systems Inc.