We took a bit of heat for suggesting our readers Look Past The Overhyped Facebook Effect in February. As we wrote at the time:
“Forget the overhyped Facebook effect (a.k.a. “buy now or be priced out forever 2.0”) and simply turn your attention to the S&P 500 which closed the day at 1,363.05, just below its April 2011 high of 1,363.61 (its highest close since June 2008) and the Dow’s 12,986.81, its highest close since May 2008.”
Having since gone public at $38 a share, Facebook shares closed at $19.05 today.
As a plugged-in reader noted, the current Market Cap for the company is roughly $41 billion according to Google (see UPDATE below), 18 percent less than the $50 billion at which the company was valued by Goldman Sachs in January 2011, since which more than half of the current employees have joined the company and been awarded shares.
That being said, the S&P 500 closed at 1,418.16 today, one point below its four year high, and the Dow closed at 13,275.20. And the number of employed people in San Francisco is currently up by 9,700 over the past five months, up 24,900 over the past year.
UPDATE: As a plugged-in reader quickly points out and assuming Henry Blodget is correct, Google’s share count for Facebook is wrong and should be 2,741,423,185, undercounting the effective number of shares by 22 percent and the market cap by as much as well.
As such, Facebook should have a current market cap of $52 billion, not $41 billion, 4 percent over its $50 billion valuation at the beginning of 2011.
We’ll also take this opportunity to note that of those 2,741,423,185 shares, only 692 million are currently tradable while the potential float will increase by another 1.6 billion shares over the next three months.