Call me crazy but I think the frenzy over Facebook shares is very shortsighted and another example of internet bubble trouble brewing. Facebook is a fantastic company with an amazing product, but I think people coming in now are probably overestimating the revenue potential for the company. Note how, in the IPO road show, insiders were cautious about claims for the future. Smart. In fact possibly a way to outsmart naive non-insiders who will simply think 1. Facebook is huge. 2.Facebook is growing 3. Facebook shares are a good value (BUZZER HERE!). At this valuation Facebook will have to be very, very good at monetizing traffic, and this is an area in which they have had somewhat limited success so far.
A key factor here is how Facebook will evolve in China and India and Europe. Major inroads there could mean profits will catch up with expectations, but failures there will make it hard for Facebook to dominate the social media landscape in the same way Google has dominated search.