High School Party

It’s like a rich kid in high school who discovered he wasn’t invited to a party, so he threw a better party and no one came.

Facebook’s edge over Google:

  • data on which Google is built ( web sites all over the World) is available to Facebook and to anyone able to build a spider.
  • data available to Facebook is locked.

Google’s edge over Facebook:

  1. much better technology
  2. much better mobile strategy
  3. much richer
  4. ads based on what you are searching for are much better than ads based on who you are.

Facebook may be a better investment than Google in the long run because:

  • Facebook is cheaper: Market Cap is $62 B vs GOOG’s $ 240 B 
  • Facebook can buy or copy better technology and search. Facebook could even enhance one user’s search result based on:
    • user’s previous likes
    • user’s data
    • user’s friends behavior and likes
  • Facebook can display search related ads, once it has introduced its search
  • Facebook is getting rich too
  • Facebook can become a payment system.

Sources:

http://finance.yahoo.com/news/facebook-bull-silicon-valley-investor-160918960.html

http://finance.yahoo.com/q/ks?s=GOOG+Key+Statistics

http://finance.yahoo.com/q/ks?s=FB+Key+Statistics

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