light headed!

Goldman Invests in Facebook at $50 Billion Valuation

The Facebook investment deal is likely to stir up a debate about what the company would be worth in the public market. Though it does not disclose its financial performance, analysts estimate the company is profitable and could bring in as much as $2 billion in revenue annually.

So you are valuing 25times annual revenues. Have we never learn’t anything from 1999 dot-com boom? or the world wide recession where companies were valued far higher than they were actually worth? Quite a gamble!