Biotech Values

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OT - Facebook - "Is it this decade's Netscape transaction?"

Time will tell. But a major difference here is that netscape is a tool but facebook is a community. There is no stickiness in the former. There is in the latter.

One issue with companies whose revenue comes from ads is to consistently get to the right people who will spend money on what they see. Google does a good job of that with their sophisticated algorithms to guess at viewer's true interest from their search terms and search history. facebook does one better in that they have captured a large chunk of the most desirable segment of the population, between teens to late 20's. These people spend on average half an hour or more a day playing around with their facebook "friends" online. And, the kicker is that they voluntarily reveal their interests in their profiles and their activities. That makes ad matching really simple and effective.

The valuation of 15B is too high for today. But then MSFT only put in 240M for a small stake, pocket changes to gain access to the core facebook platform and learn a few things.