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Greythorn Comments on Facebook!

Greythorn Comments on Facebook!

Mark Baxter, director of IT recruiter Greythorn: “When the news was first announced that facebook would be floating for $100bn scepticism abounded. But the IPO has confounded the sceptics. Although there’s clearly a big appetite for facebook, there are still fundamental questions about the business that savvy investors will be asking before joining the facebook jamboree.

“The company has made great strides in monetising its product over the last year, but it still boasts a tiny revenue stream for a company which the IPO would catapult into the global corporate elite. The valuation is clearly based on investors’ belief that the progress will continue and facebook’s cashflow will grow and grow.

“But there’s another problem with facebook – its founder. In research we conducted at the beginning of the year, Mark Zuckerberg rated as IT professionals’ most unpopular industry figure – beating both Bill Gates and Steve Jobs comprehensively. This explains why more than three quarters of professionals told us they considered the initial valuation of facebook was too high. There are still big questions about Zuckerberg’s ability to lead a company as prominent and valuable as facebook to further growth which could yet take the shine off their IPO”.

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