Facebook’s on a trajectory to more than double in value annually, based on transactions in the company’s holdings on private markets.
The New York Times cited a report by private market advisory firm Nyppex showing that Facebook’s implied enterprise value grew 56.1 percent from June 30 to December 1 of this year.
That’s actually closer to a five-month period than half a year. Without compounding the percentage growth rate, it adds up to 123.4 percent annually. Compound that and try not to get dizzy.
We look forward to any full-year analysis that Nyppex might calculate. At least one more private-market auction has yet to close before anyone can accurately spell out an annual growth rate for Facebook this year.
Similarly, we’re curious about whether Facebook will be able to continue this trajectory next year. Growth opportunities from here are riding on mature users and international markets.
We’re noticing that the former may occurring as grandparents clue in to the social network’s potential for keeping them in closer touch with their millennial grandkids.
Opportunities to grow in non-U.S. markets seem more uncertain. Obstacles remain in parts of the world that have non-Roman alphabets or laws tilted toward censorship.
Readers what do you make of the numbers from Nyppex below? Can Facebook’s torrential growth in valuation continue into next year?
Source: All Facebook