09-Nov-2010 22:59

Is Zuckerberg's Facebook actually worth money?

With the only income seemingly from 'click through' ads will Facebook's business model continue to work or will it bomb?

At the moment, Facebook's worth may simply be what people will pay for (some would argue) an overhyped product.

If enough 'investors' (pension funds, banks and possibly venture capitalists) believe that there is sufficient advertising revenue available or if the assets (i.e. all of 'our' information) owned by Facebook can be monetised to yield a return, there will be a ramped up price.

If (or should we say 'when') it transpires that Facebook cannot actually generate enough advertising money or create value from their information, someone, somewhere is going to lose a packet…

There's little doubt that Zuckerberg himself will eventually walk away with his pockets lined with gold but will investors make any money?

What are your thoughts?