Are Facebook Application Users Worth $1.40 a Piece?

January 16, 2008 in Finance, Social Networking

I saw this in Mashable:

SNAP Interactive Earnings: Are Facebook Application Users Worth $1.40 a Piece?

January 16, 2008 — 03:22 AM PST — by Adam Ostrow — Share This

As a publicly traded company, SNAP Interactive (formerly eTwine Holdings), the company behind Facebook apps “Meet New People” and “Are You Interested?” is required to file their earnings every quarter with the SEC. Thus, we’re able to get a peek into how much money Facebook applications are actually generating. more…

My Thoughts: While the scale of this analysis is rather small, it is the first that I’ve seen that used market data to determine a value. If facebook is worth 15B, then each user to FB is worth $300 ($15B/50M user), Divide that by 5 and FB should be making $60 per user in sales, are they?

-Ernest