$ 100 Billion

     Facebook goes public this morning and by the close of Wall Street today the social network is going to be valued at $100 billion plus.  How can a company that has not even turned a profit yet be worth $100 billion?  The answer is future advertising revenues.  There is already a $200 billion company that makes a profit by the way of online advertising, that company is Google.  Facebook and Google are two different platforms.  When you see advertisements on Google you have gotten to that page because you have searched a specific subject which in turn lets Google tailor the advertiser's  subject matter to your search.  Using that formula you are more apt to dell further into the advertisement.  Facebook on the other hand operates on the formula that word of mouth is the best kind of advertisement.  They hope that you will like and buy what your friends do.  General Motors does not believe in that formula and Wednesday canceled their $ 10 million advertising contract with Facebook.  GM simply stated that very few  Facebookers were interacting with the ads the company placed on Facebook pages.  Soon a lot more companies will come to he same conclusion and if that happens anyone who want to have a Facebook page might be charged for the privilege.  Are you be willing to be flooded with advertisement that's not related in anyway to your day just so you can see pictures of a friend's baby's first birthday party or learn that a friend you went to high school just got a promotion?
     I'll be the first to admit, Facebook has been a runaway freight train like no other but it will never be able to knock Google off he tracks.  There is room for both trains as long as both pay attention to the track signals.  Gold watches, I don't see any of those passed out to either company.  So if your thinking of buying a ticket today for the Facebook train just remember a derailment is always possible.