Is Facebook really overvalued ?

The Golman Sachs valuation of facebook may seem high to many analysts now. However, the potential for facebook in realizing the revenues from its ever increasing user base is immense. And facebook seems to be moving towards this in not too distant future.

Facebook: $1 Billion profit this year?

http://www.businessweek.com/technology/content/jan2011/tc2011016_998330.htm

Facebook recently beat google in terms of time spent. With the huge repository of knowledge that facebook has, it can easily overshadow google by profiling users better. This will make facebook more appealing to advertisers and enable facebook to continue eroding into google's advertisement revenue as it's user base continues to increase.

Facebook Ramps up big E-commerce drive

http://www.businessweek.com/technology/content/dec2010/tc20101217_877527.htm

Facebook is ramping up efforts to entice companies such as Delta Air Lines and J.C. Penney to sell wares on its pages and convert more of its 500 million users into online shoppers.Facebook is adding e-commerce features to attract users, keep them logged-on longer, and generate higher advertising sales. The effort may turn the company into an online shopping alternative to retailers such as eBay.