Is Facebook an investment for all MAU’s & DAU’s?

Equating * MAU’s & DAU’s  with all men women & children we’re not really sure! We’re also not qualified to give any advice. We should declare a possible interest as we may join the millions trying to buy shares in the IPO.

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*MAU – Monthly Active User DAU – Daily Active User

Initially some info:

Now some comments to add to the acres/hectares that will be published over the coming weeks:

1 Market capitalisation per employee

With a likely value of between $75bn and possibly over $100bn and about 3,200 employees it’s in the over $20m range. Allegedly  CISCO & also possibly Microsoft got into the 2 figure range back in the last bubbly days!

Currently (from a very quick look – e & o e) at the several to many billions market cap. level Apple, Exxon Mobil, Google and  Linkedin, are in the $4m – $7m  range with Zynga and Microsoft down at $3m ish or a bit less.

2 Profitability

Net income at over 25% of sales in each of the last three years is most impressive. Apple were in the same league at 28% in the last (calendar) quarter of 2011.

3 Cash Dividends etc

They appear to be following the Apple business model of no dividends. “We currently intend to retain any future earnings for use in the operation of our business and do not intend to declare or pay any cash dividends in the foreseeable future.” Significant Cash generation is therefore probable.

4 Purpose of the IPO

“The principal purposes of our initial public offering are to create a public market for our Class A common stock and thereby enable future access to the public equity markets by us and our employees, obtain additional capital, and facilitate an orderly distribution of shares for the selling stockholders.”

5 The Russian connection

Yuri Milner and Mail.ru  (Russian site)  look interesting and worth a little scramble round t’internet. Initial links – Wikipedia Mail.ru  Yuri Milner   Article – Yuri Milner

Update 03/02 9.30am  Sale & voting restrictions on the Yuri Milner / Mail.ru / DST Global Ltd stake from the WSJ

6 Mark Zuckerberg

Is 27. He is Chairman and CEO of Facebook Inc. He will likely continue to control the company for the foreseeable future after its flotation. He is a signatory to the Giving Pledge  founded by Bill Gates and Warren Buffett.

It will undoubtedly be an interesting journey!

 


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