…even if Facebook gets to 3 billion users, if it doesn’t increase its revenue per user, the company will only generate $13 billion in revenue per year, as analyst Trip Chowdry has pointed out. That’s not going to justify a market capitalization of $100 billion. Google, for example, generated $38 billion in revenue — nearly three times Facebook’s hypothetical three-billion-user hypothetical — and has a market cap of $190 billion.
Here’s the Number That Matters in Facebook’s IPO Filing - Alexis Madrigal - Technology - The Atlantic
