Facebook valuation to reach $234 billion by 2015

Facebook valuation will remain a matter of speculation, unless the social network goes public. Till then it is party time for speculators. According to an analysis by brokerage firm Wedbush Securities that analyses the valuations of private companies,

Facebook will have market value of $234 billion by 2015, up from its current valuation of $85 billion. Thus the Facebook valuation is going to increase 175 percent in the next four years.

The guess which comes from the Wedbush Securities analyst Lou Kerner, in a report called the 'Second Internet’ last week (Second Internet is a term coined to represent the quick rise of ‘social internet’ companies as different as Facebook, Zynga, Twitter, The Huffington Post and Quora); further says that by 2015 Facebook will earn $11 billion on every $22 billion. A profit of 50 percent.

The recent guess work, of the Analyst is $134 billion more than his earlier predictions in February 2010. A year ago, Kerner had guessed the Facebook valuation to reach $100 billion by 2015. The analyst bases his extremely ambitious leap on his belief that Facebook will get a bigger share of the global ad market by 2015. The analyst also believes that other revenue sources -- like Credits -- will scale faster than he originally anticipated.

According to the report, only one technology company -- Apple -- has a current higher market cap of $321 billion than that predicted for Facebook by 2015. Microsoft is currently valued at $213 billion. --------

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