While valuations for the company have gone to as high as $100 billion in private markets, an initial registration statement is all it takes to provide a much clearer picture of how Facebook’s metrics are faring.
Facebook leads in the global social networking arena, competing with the likes of Google, LinkedIn and MySpace.
Registration Would Throw Much More Light on Metrics
Much like Groupon and LinkedIn, Facebook’s purported valuations have varied considerably since the last one year. A big reason for this is an asymmetry of information regarding Facebook’s operating metrics.
While registered users on Facebook are visibly expanding, information on Facebook’s revenues and operating margins is erratic at best as the company has no obligation to release its financial data. As a result, a single figure released from a relatively anonymous source can send the market into a flurry.