Welcome!

Recurring Revenue Authors: Elizabeth White, Yeshim Deniz, Xenia von Wedel, Liz McMillan, Carmen Gonzalez

Blog Feed Post

Facebook valued higher than IBM?

Yesterday Facebook with its stock soaring to new heights, exceeded IBM in terms of market value. This morning, it’s slightly less (IBM at $194B vs Facebook at $193B). However Facebook is higher than Oracle’s value and is the third largest company in the valley after Apple and Google. For enterprise software folks like me, this is very hard to explain. Value of what? – the photographs, likes and connected friends?

Market value is the total number stocks multiplied by the stock price. Sometimes, it can be a huge multiple of the current revenue – as is the case for Facebook. It’s projected annual revenue for this year at $12B is minuscule compared to IBM’s $100B in 2013. Facebook is 10 years old with 7000 employees compared to IBM’s age at 103 with more than 400,000 employees. The market value indicates the “projected” growth of a company and a higher demand of its stock increases the value. Sustainability is another issue.

Facebook reported stellar performance earlier this week, exceeding the analyst’s projection. It’s mobile advertising revenue was impressive, compared to zero two years ago. This pushed the stock to almost $76, twice the price of its IPO at $38 and four times the low of $18 at one time. Mark Zuckerberg is worth almost $33B at the ripe age of 31, adding a whopping $1.6B yesterday to his net worth.

I guess social networking is a huge force. With 1.2 billion users, Facebook owns a great treasure called the “social graph” of a huge population. Advertisers would bet all their money to reach such an audience. This year, the net spend on mobile advertising would exceed that of TV and print media spending. Every time, you use Facebook, it keeps track of you and your connections, plus photographs, links, timeline, etc. There are privacy issues being debated.

Facebook is growing very fast in countries like India and Brazil. No wonder Sheryl Sandberg visited India last month and met the new prime minister Mr. Modi to discuss how Facebook can be used for better governance in the largest democracy of the world. Incidentally, IBM’s largest number of employees now are in India, bigger than the US. 

It is still hard to digest the fact that Facebook is almost equal to IBM’s value!


Read the original blog entry...

More Stories By Jnan Dash

Jnan Dash is Senior Advisor at EZShield Inc., Advisor at ScaleDB and Board Member at Compassites Software Solutions. He has lived in Silicon Valley since 1979. Formerly he was the Chief Strategy Officer (Consulting) at Curl Inc., before which he spent ten years at Oracle Corporation and was the Group Vice President, Systems Architecture and Technology till 2002. He was responsible for setting Oracle's core database and application server product directions and interacted with customers worldwide in translating future needs to product plans. Before that he spent 16 years at IBM. He blogs at http://jnandash.ulitzer.com.

IoT & Smart Cities Stories
The deluge of IoT sensor data collected from connected devices and the powerful AI required to make that data actionable are giving rise to a hybrid ecosystem in which cloud, on-prem and edge processes become interweaved. Attendees will learn how emerging composable infrastructure solutions deliver the adaptive architecture needed to manage this new data reality. Machine learning algorithms can better anticipate data storms and automate resources to support surges, including fully scalable GPU-c...
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.
Digital Transformation and Disruption, Amazon Style - What You Can Learn. Chris Kocher is a co-founder of Grey Heron, a management and strategic marketing consulting firm. He has 25+ years in both strategic and hands-on operating experience helping executives and investors build revenues and shareholder value. He has consulted with over 130 companies on innovating with new business models, product strategies and monetization. Chris has held management positions at HP and Symantec in addition to ...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities - ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups.
As IoT continues to increase momentum, so does the associated risk. Secure Device Lifecycle Management (DLM) is ranked as one of the most important technology areas of IoT. Driving this trend is the realization that secure support for IoT devices provides companies the ability to deliver high-quality, reliable, secure offerings faster, create new revenue streams, and reduce support costs, all while building a competitive advantage in their markets. In this session, we will use customer use cases...