Welcome!

Microsoft Cloud Authors: Kevin Benedict, Pat Romanski, Liz McMillan, Lori MacVittie, Elizabeth White

Blog Feed Post

Facebook valued higher than IBM?

Yesterday Facebook with its stock soaring to new heights, exceeded IBM in terms of market value. This morning, it’s slightly less (IBM at $194B vs Facebook at $193B). However Facebook is higher than Oracle’s value and is the third largest company in the valley after Apple and Google. For enterprise software folks like me, this is very hard to explain. Value of what? – the photographs, likes and connected friends?

Market value is the total number stocks multiplied by the stock price. Sometimes, it can be a huge multiple of the current revenue – as is the case for Facebook. It’s projected annual revenue for this year at $12B is minuscule compared to IBM’s $100B in 2013. Facebook is 10 years old with 7000 employees compared to IBM’s age at 103 with more than 400,000 employees. The market value indicates the “projected” growth of a company and a higher demand of its stock increases the value. Sustainability is another issue.

Facebook reported stellar performance earlier this week, exceeding the analyst’s projection. It’s mobile advertising revenue was impressive, compared to zero two years ago. This pushed the stock to almost $76, twice the price of its IPO at $38 and four times the low of $18 at one time. Mark Zuckerberg is worth almost $33B at the ripe age of 31, adding a whopping $1.6B yesterday to his net worth.

I guess social networking is a huge force. With 1.2 billion users, Facebook owns a great treasure called the “social graph” of a huge population. Advertisers would bet all their money to reach such an audience. This year, the net spend on mobile advertising would exceed that of TV and print media spending. Every time, you use Facebook, it keeps track of you and your connections, plus photographs, links, timeline, etc. There are privacy issues being debated.

Facebook is growing very fast in countries like India and Brazil. No wonder Sheryl Sandberg visited India last month and met the new prime minister Mr. Modi to discuss how Facebook can be used for better governance in the largest democracy of the world. Incidentally, IBM’s largest number of employees now are in India, bigger than the US. 

It is still hard to digest the fact that Facebook is almost equal to IBM’s value!


Read the original blog entry...

More Stories By Jnan Dash

Jnan Dash is Senior Advisor at EZShield Inc., Advisor at ScaleDB and Board Member at Compassites Software Solutions. He has lived in Silicon Valley since 1979. Formerly he was the Chief Strategy Officer (Consulting) at Curl Inc., before which he spent ten years at Oracle Corporation and was the Group Vice President, Systems Architecture and Technology till 2002. He was responsible for setting Oracle's core database and application server product directions and interacted with customers worldwide in translating future needs to product plans. Before that he spent 16 years at IBM. He blogs at http://jnandash.ulitzer.com.

IoT & Smart Cities Stories
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things'). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing. IoT is not about the devices, its about the data consumed and generated. The devices are tools, mechanisms, conduits. This paper discusses the considerations when dealing with the...
Charles Araujo is an industry analyst, internationally recognized authority on the Digital Enterprise and author of The Quantum Age of IT: Why Everything You Know About IT is About to Change. As Principal Analyst with Intellyx, he writes, speaks and advises organizations on how to navigate through this time of disruption. He is also the founder of The Institute for Digital Transformation and a sought after keynote speaker. He has been a regular contributor to both InformationWeek and CIO Insight...
IoT is rapidly becoming mainstream as more and more investments are made into the platforms and technology. As this movement continues to expand and gain momentum it creates a massive wall of noise that can be difficult to sift through. Unfortunately, this inevitably makes IoT less approachable for people to get started with and can hamper efforts to integrate this key technology into your own portfolio. There are so many connected products already in place today with many hundreds more on the h...
CloudEXPO New York 2018, colocated with DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
SYS-CON Events announced today that IoT Global Network has been named “Media Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. The IoT Global Network is a platform where you can connect with industry experts and network across the IoT community to build the successful IoT business of the future.
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
DXWorldEXPO | CloudEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
Disruption, Innovation, Artificial Intelligence and Machine Learning, Leadership and Management hear these words all day every day... lofty goals but how do we make it real? Add to that, that simply put, people don't like change. But what if we could implement and utilize these enterprise tools in a fast and "Non-Disruptive" way, enabling us to glean insights about our business, identify and reduce exposure, risk and liability, and secure business continuity?
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
DXWorldEXPO LLC announced today that Telecom Reseller has been named "Media Sponsor" of CloudEXPO | DXWorldEXPO 2018 New York, which will take place on November 11-13, 2018 in New York City, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.