Report Suggests Facebook Generated $800 Million In '09

This morning Reuters published a report suggesting that Facebook generated upwards of $800 million in 2009, far above previous estimates reported by insiders. The reason for the revised numbers is that Facebook has been “downplaying” previous estimates in an effort to keep investor expectation low. It’s a model that many public companies also use in an effort to continuously surpass estimates.

One has to wonder why this mysterious source came out with numbers just now. There’s a few obvious reasons that a leak would happen at this time. One possibility is that an insider is looking to sell off some of their shared and this is an effort to increase demand for the stock. Facebook’s stock recently traded at a $17 billion valuation and many are waiting on a public offering, but the latest signals have suggested it won’t happen this year.

As such, there’s really no need for Facebook to really hype their valuation right now. As Reuters suggests, “There’s no upside in getting people’s expectations high, it’s always better to go low.” However one has to wonder why this report came out now. While there may have been no motivation by the source here, you always have wonder about the timing of information that’s as tightly held as this.

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