Photograph of Kay Plantes

Kay Plantes is an MIT-trained economist, business strategy consultant, columnist and author. Business model innovation, strategic leadership and smart economic policies are her professional passions. A former Madison, WI resident, Kay now resides in San Diego, CA. The views on her blog are not those of her employer, IBM.

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February 15th, 2012

Business model strength, not numbers, should drive Facebook’s valuation

Are investors making a fundamental mistake in using LinkedIn’s market capitalization as a reference point for Facebook’s potential value? Selling consumer ads  (at least twice the market size of B2B ads) to a network over six times LinkedIn’s 135 million members, why shouldn’t Facebook’s value be $100 billion, about twelve times LinkedIn’s $8.4 billion market [...]