Facebook’s $100 billion valuation, plus the $1 billion in cash it earned from selling ads, means the social network is valued at about $100,000,000 per share.
That’s almost three times the value of Google, which has about $1.5 billion.
So what does Facebook do with all that money?
The answer, according to an industry analyst with more than 30 years of experience, is to build a giant data center and use it to store all that data.
“This is a big deal,” says Andrew Pfeiffer, CEO of Palo Alto-based Pfeiffser Associates.
“And I think the next 10 years will see the Internet’s true scale and scale of social.”
Facebook is already one of the largest tech companies in the world, with a billion active users a quarter, more than Amazon, Netflix and Microsoft combined.
But it’s not just about the money.
Zuckerberg’s company has built an incredibly ambitious data center, the biggest in the U.S., and it’s already making money.
Its revenue last quarter topped $1 trillion, or roughly $10,000 for every American man, woman and child.
“They are already in a position to be one of our largest businesses, and it will only get bigger,” says Pfeifer.
“You see the growth rate for Facebook and Google right now.
“Facebook is the biggest player in the space,” says Steve Yasskin, chief executive of Yasskkin Communications. “
Yasskins is also Facebook’s chief technology officer, and the company has hired dozens of top technology executives to help run the data center. “
Facebook is the biggest player in the space,” says Steve Yasskin, chief executive of Yasskkin Communications.
Yasskins is also Facebook’s chief technology officer, and the company has hired dozens of top technology executives to help run the data center.
Zuckerberg is also in charge of Facebook’s massive data centers, where he has built up a massive data center in the Netherlands and another in South Korea.
That data center is called the new Facebook Data Center in Germany.
The Netherlands, which is in the middle of the European Union, and South Korea, which shares the same technology, are the largest data centers in the whole world.
The Dutch and South Korean centers are each more than a hundred times bigger than the U of T’s data center at the University of Toronto.
The new Facebook data center will be able to house hundreds of petabytes of data, Pfeifer estimates.
Pfeiefer estimates the data centers will double in size every year, and he estimates Facebook will need to double its data center by 2020 to meet demand for ads on the site.
Pyeiffer is optimistic about Facebook’s growth.
Facebook’s revenue has grown at about 7% a year since the beginning of 2017, and its market cap has grown more than 100 times over the past five years, Pyeiffser says.
“There’s a lot of room to grow, and I think we will see that growth continue to accelerate as Facebook grows,” he says.
Facebook, he adds, “has the most diverse community in the tech world, and is making huge investments in the way it runs its business.
It’s going to continue to do so.”