Investors Worried Over Facebook's Value Proposition

This transcript is automatically generated

Thanks very much.

As FaceBook prepares for its highly anticipated initial public offering new concerns are rising from investors all right Shibani Joshi -- -- that story for us enjoys relatively selfish about.

I Barack -- day in light I know that you guys aren't FaceBook I'm on FaceBook in the value proposition is clear press its -- And it gives -- a way to touch our audience in a different way -- big advertisers out there including Kia Motors.

They're beginning to ask some hard questions as to whether or not FaceBook has -- same sort of value proposition.

For their company -- -- that a company has about 20000 stands.

But what -- they add to the bottom line this is a value proposition that FaceBook will need to proven convince investors.

As it begins to pitch its stock to investors on its roadshow next week the company will likely go public with a valuation of about a hundred billion dollars.

But if you do the math you Begin to wonder whether or not the valuation is justified FaceBook currently.

Is being value -- that 33 times its ad revenue you compare that to Google.

Which gets a five and a half times premium the question is it's difficult to prove the effectiveness.

It's advertising platform and not something that -- will have.

To convince investors of as it goes on its -- -- -- in the next couple of weeks.

Survived thank you so much for that Shibani Joshi battle has staged -- roadshow of course if Zuckerberg is expected to show up at least -- -- -- -- -- because again -- the valuation the gets the more money.

Hadn't heard of war I was gonna say you're just so -- you're always so angry about it but -- -- -- guys I think it's it's genius he's twenty -- Uber dork so killing is and -- At an Iraq armed and there you guys everywhere about 2.5 billion dollars -- -- on --

Watch Live

Investors Worried Over Facebook's Value Proposition

Details

Clips

Latest Video

Rep. Hensarling: IRS is Most Feared Agency of Government

Should Trades Like Plumbing Be Encouraged More?

How Safe are Tornado Shelters?

Congress at Fault for Corporations’ Tax Strategies?

Harpoon Founders Tap Success in Craft Beer Void

Rep. DeSantis: Complete Lack of Accountability in DC

The Market Breaking Records Without Retail Investors?

Was IRS Targeting Opponents of ObamaCare?

Are You at Risk of Medical Identity Theft?

Time to Reform Cable Industry?

Texting to Reduce Depression?

Ensuring Your Donations Get to Those Who Need it

Transcript

Recommended