Facebook and Google Plus

So, here’s a thing.

I believe that Facebook’s valuation will never be as high as it is today. Why do I believe that? Because for the first time in their recent history, they are being faced with real competition from Google. According to the private capital markets company SharesPost, the most recent shares in Facebook changed hands at a price that gave an implied valuation of $82.4bn.

Google on the other hand, has a market cap of $172bn. Is Facebook really worth 50% of Google?

I have not yet used Google+ but from some of the things that I have read, it answers the “privacy” question really well. I have always found Facebook to be very poor in this area. Many of my posts are not appropriate for different sections of my “friends” to read, so in the past I have unfriended certain people so they don’t get to see it all.

I feel that Facebook is OK as a product but not great. There are many many things that could and should be done with Facebook but they have had a dominant position for quite a while. The iPad and iPhone facebook applications are really pretty poor.

Of course, 750m users (or whatever the latest number is) don’t just go away overnight but, it’s amazing how fickle the consumer web users can be. I heard a 17 year old recently saying that “I don’t use Facebook any more because my dad’s on it” – i.e. it is no longer cool.

Anyhow, let’s see 1 year from now on 7/7/2012 where the valuation of these two companies stands compared to today.

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