Facebook vs google about their potential market value when they become public

Facebook is announcement they are preparing the largest tech company IPO in history. a lot of people are trying to compare its financial and potential market value against the current tech grant in the market :GOOGLE when they went public.

all of the number in the Facebook financial report are look bigger. for example, its pre-IPO revenue is $3.7 billion in 2011 are two and half time more than google at 2003(they went public at 2004). Facebook $1 billion in profit is ten times larger than google pre-IPO profit of $106 million. and Facebook at expect had a marketing cap at between 50 billing and 100 billion compare to the google IPO market cap of 23 billions.

Facebook will definitely state all the difference above, but in a lot of way the comparison is false about the potential of a company. for example, Facebook already exist for 8 years before they become a public company. Google went public in a much earlier stage in their growth of development after 5 full year. Facebook at year 8 is much bigger than google was at year 5. A better or truth way to compare is to compare two company stack up is to compare their revenues and profit at the same point in their histories.

In 2008 ,Facebook fifth year of existence ,it revenue were only 272 million and it lost 56 million. it clear show google has a better development at year 5.

if you just use the revenue chart of Facebook for the past 5 year to compare them to google for the five period preceding its IPO, a true picture of each company size will show at the similar period of time. All you need is to compare Facebook 5 year old vs google in 5 year old.

compare both company year by year, it its clear that google is better company, they growth fast and is a bigger company no matter what year you look at. in year 8 for google was 2006, when its revenue were 10.6 billion and it profit were 3.5 billion. As an 8 year old company google's profit were just as large as Facebook revenue at year 8.

which company growth faster? the 5 year compound annual growth rate for each one revenues during these comparable periods the (2002-2006 google and 2007 to 2011 for Facebook) 89 percent a year for Facebook versus 88.96 percent for google. but google started with almost twice the revenue and thus ended up much larger five year later.

however, there are still a few things we have to put in perspective. first Facebook is a straight forward with social media platform their main revenue steam is advertisement and selling data and apps revenue. google is a much bigger company , they has search engine,date base, email address etc. Google is a much bigger company with more platform to generate income. therefore I think if people interest in their IPO they should look at company that is more social media relate company that has been IPO.