Just a couple of months back, Facebook reached a new high in terms of its valuation – $ 50 billion. At that point of time, it had a P/E ratio of 125, which was much higher than Google and Apple. It’s revenues in 2010 were $1.86 billion with a profit of $400 million.
Just when we were thinking that the Facebook valuation bubble had peaked and was cooling off, it reached a new high of $78 billion based on the sale of a block of shares at SecondMarket, just about 10 days back.
Now, it seems, Facebook’s valuation is at a new, higher, high. According to the last auction of Facebook shares by SharesPost, Facebook’s valuation is now $85 billion, with a stock price of $34. SharesPost just auctioned off a block of 100,000 shares for $3.4 million. That is just 0.004% of the total Facebook stock though, hardly an accurate indicator of Facebook’s true value.
There still seems to be a lot of demand for Facebook shares, as no one wants to miss out on the next Google. Facebook seems poised to hit the $100 billion mark soon. If that happened, Facebook would be one of the few private companies to be valued so high. Apparently, some of Facebook’s founders and stock holders who got in early are cashing out already. Hardly a vote of confidence, huh?