has facebook been valued correctly or we are heading toward the biggest scam?

[anonymous]

First thing, how can a company like facebook with no product can be valued so high. people who would argue that facebook has products like application and stuff, must understand we as human and our emotion to stay connected has been traded by facebook.

secondly, I think it has been 10x over valued and we are heading towards a big collapse there's another bubble about to burst called social networking.

Kindly present your views, last I am not a native English speaker

[JD]

traded by facebook?
So...you're saying people don't stay connected in person anymore?
That's completely wrong.

Also, it's more of a service than a product.

[engr_tam]

Facebook makes its profits by selling advertising to companies. Facebook also takes the demographic information and 'likes' to help sell more ads. That is the business they are in, and that's the business being traded.

My opinion is that it was always overvalued from the beginning and all the media hype about it just fueled the flames to get people to buy it. I'm not buying it. Not now, not ever.

I am a Facebook user, but I will never buy a share in a 'new' corporation that doesn't produce actual consumer goods.