Have Goldman Sachs valued Facebook too high?

My answer would be no, at least not yet. Facebook is now a monster in the social network scene. Due to the nature of internet sites, there is always the risk that someone else will create a similar website and take some consumer base.In my opinion, nobody is coming close to giving Facebook a run for it's money.

Eventually someone will, and that will be the new big thing. My understanding as to why Goldman has such a high value on Facebook: 1) Social Networking/ Constant Electronic Communication is everywhere 2) Facebook has received a lot of media time since the release of the movie 3) Competitors will most likely become apparent before a mass run on Facebook As to whether Facebook is another bubble like the "Dot Coms" or "Tulip Mania", I would say yes, but slightly different. The Dot Com bubble burst when people figured out that not every computer or internet based company could actually create a valuable service or product, and seemingly everyone decided to bail on them in rapid succession.

Only the strongest companies survived. In the Dutch tulip craze (known as Tulip Mania) everybody went into a tulip buying frenzy and the prices of bulbs skyrocketed. This lasted until the people again figured out that the price of the product was drastically higher than the true "value" of the flower.

A single flower bulb that was worth a house the previous day was now worth nearly nothing. In both cases, the consumer decided it was over-priced for the value and decided to cut and sell. What I find interesting about Facebook is that it generates the bulk of its revenue through advertising, which is viewed by millions of daily visitors.

For the most part, people who use Facebook have no financial stake in the business. For that reason, I doubt people will suddenly think that "friending" somebody is a waste of time and give up on social networking all together.At least not enough to create such a massive disturbance as in the other two bubbles. Eventually something "better" will come and take the premier position currently occupied by Facebook.

I believe it has built enough "brand name support" to keep that from being a mass, over-night exodus. I think we will see the competition coming long before it wipes out Facebook, and that is why I think Goldman Sachs is correct in having such faith in Facebook at this time.

I cant really gove you an answer,but what I can give you is a way to a solution, that is you have to find the anglde that you relate to or peaks your interest. A good paper is one that people get drawn into because it reaches them ln some way.As for me WW11 to me, I think of the holocaust and the effect it had on the survivors, their families and those who stood by and did nothing until it was too late.