I think the investment bankers with their fees and current share holders are going to make an inceadable fortune and based on hipe I am sure the share price will rise to some ungodly PE and some shmuck in time will lean some hard lessons about the stock market
While I agree that Facebook will likely be overpriced - you cannot compare it to rubbish like Groupon and - to a lesser extent - Mail RU. Facebook is a fascinating an MAJOR asset with vast potential. Rather look at Google for a comparative asset.
they make money from ads, as google does .. but I not sure they a fantastic asset, remember myspace ?? I know this time it is sdifferent, but it never is .. at $100bn it values every user at over $100, that is a whack lot of adverts I gotta click on, anybody every clicked on an ad in FB ??
They also charge a rental on games and other links. I was talking to my 24 year old son and his girlfriend and they said they and their friends are bored with Facebook and have 'moved on.' Must admit I found it boring but just use it to play scrabble. I only remove adds. Never view them.
You can never be sure (especially with an IT company.) They are an internet within an internet - many of their users never leave their facebook subnet (or nearly so.) Nobody can search within their space. Nobody can advertise within their space - UNLESS they allow it.
Regarding the price - I am sure it is way too high! I struggle to appreciate the idea of pricing an asset so that the earnings "will grow into it." Seems a bit of an "***** about face" way of doing things.