Facebook Rides High With $87.5 Billion Valuation


The incredible growth of social media is showing sign to slow down.  Titans of Industry are constantly appreciating their reach as well as their market value. Latest, Facebook has improved market valuation to $87.5 billion – assuming company still holds 2.5 billion outstanding shares – when its stock closed at $35 in an auction on SharesPost.

Compare to last auction held in April this year, Facebook share price has been improved by $3. Undoubtedly, this will only blow the susceptible Tech bubble further. Recent market response of LinkedIn IPO, which almost doubled the company valuation over night, has already triggered the discussion over the possible threat of another Tech bubble under ‘incubation’.

Last year, Facebook decided to postpone its IPO for 2012 and if the growth of the company as well as Industry remains the same, certainly Facebook will be worth $100 Billion or more when it will hit the IPO floor. Also, with 685 million users currently, company is expected to celebrate 1 billion users mark by end of this year.

Last week, we had unveiled a comparative infoghraphic on growth, valuation, market share and reach of few much appreciated online companies like Facebook, Twitter, LinkedIn etc. One message which was very clear and loud – “Most (I would say “All’ rather) of those companies are overvalued. Consequently, debate has been fired on “Is another Tech bubble is shaping up?”

SharesPost sent the following email to members about the auction:

We are writing SharesPost members like you who indicated they would like to occasionally receive news from SharesPost.

We would like to inform you that SharesPost’s affiliated broker-dealer completed its auction of 100,000 shares of the Class B Common Stock of Facebook, Inc. yesterday, May 26th. A clearing price of $35.00 was established at the auction. Members submitting Qualifying Bids at or above the clearing price will be contacted shortly with instructions on next steps for completing this transaction.

SharesPost members who wish to be informed of and be eligible to participate in future auctions of private company securities must first be qualified by our affiliated broker-dealer as an accredited investor under the securities laws. To get qualified, please click on the green button below. We look forward to serving you at SharesPost in the future.

We are leaving on you to decide and give you verdict on whether we are heading for another bubble blast or is it’s a serious growth ?

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