How is it possible for facebook to have a value of 32 billion which is £63 per user when most spend nothing?

[YoMick]

there's a lot of emotive power in the stock market - not sure if you've noticed the ups and downs of other business "values". there was a company in Australia that had an arse for a managing director and the share price dropped and dropped as he did more and more bad stuff. they gave him the flick and the share price jumped over 30% in one day. I'd say Facebook is based on a lot of hype, yes, there is value in it, but smoke and mirrors are very easy to set up...

[tex k]

the value of internet based companies is one of the financial mysteries of the modern age .I don't believe facebook itself has actually made any money /profit itself since it was created.The money has been made simply by trading the "shares" in this electronic company.
For some reason financial institutions believed that any internet company was bound to be a financial hit .How they came to this conclusion is not known.But one story illustrates this phenomenon .A young potter needed a new kiln to fire the larger pieces she was producing and to fire in greater quantities .No bank would give her the £4000 she needed for this. She then changed tack and asked for the money to start an internet company anypots.com for example. From that point she was offered £400,000 .The same applies to internet companies it is not what they produce nor the revenue from advertising but the perceived value that the stock market puts on the company.This is why we had the last financial crisis with banks and bankers pushing up the perceived value of everything which could not be sustained .