Clara Shih Talks Facebook's $100 Billion Valuation

Posted on May 19, 2012

Facebook's IPO debuted yesterday. It was not a great beginning as Facebook's bankers had to step in numerous times to keep the shares from plunging below the $38 IPO listing price. Facebook [NASDAQ: FB] has an extremely high P/E of 122.37 and a massive market cap of $104.81 billion.

One of the big questions going around is whether Facebook is worth $100 billion. Clara Shih, CEO of Hearsay Social and author of The Facebook Era, talked with MoneyWatch's Jill Schlesinger about the value of Facebook. Shih sees a lot of upside in Facebook. She sees medium term growth in monetizing mobile and international advertising. In the long term she sees revenues from search, ecommerce and television. She does she a potential pitfall for Facebook in that she thinks an unknown competitor will definitely come along in five to ten years. So, the big question for Facebook might be whether or not it can figure out how to effectively monetize its massive user base before an unknown entity rises up and dethrones it. Take a look:

Photo: Prentice Hall