Facebook valuation rises 49.6% in two months

According to a bid on SharesPost, someone will buy 10,000 shares of Facebook at $33.00 per share, implying a US$74.8 billion valuation on the social media entity. Sellers are demanding between $31.00 and $39.00, so that trade may well be contracted shortly.

And here I thought investing in Google or Apple had more liquidity, and was cheaper on every financial metric, than this particular (one-of-a-kind?) private company (see prior post “Facebook’s $50B valuation betrays tech market reality” Jan 4-11). Looks as though that’s still the case.

Is it possible that Facebook’s revenue and/or profitability has grown that much in the space of 60 days? Before too long, someone will try to create an application for a Shorting element to the private share marketplace. Hey, that’s what makes a market!

MRM
(hat tip WSJ)