Facebook shares are now being sold above $50/share, according to a TechCrunch article. That puts a valuation at around $22.5 billion. Michael Arrington believes that part of the quick rise in the Facebook share price (100% jump since January), is due to a tightening supply. Rumors have been circulating that current Facebook employees are no longer allowed to sell stock, due to the Rule of 500. Arrington goes on to describe the recent jump in share price as “bubble-like pricing”.
We disagree that a $22.5 billion valuation of Facebook is bubble-like. Our Facebook research report we released in March valued the company at $50 billion, and we stand behind this valuation. However, recent increase in volume could certainly be due to scarcity, but we also believe that its due to a greater awareness and understanding of the true value of Facebook.
