Markets

Trefis Morning Coffee – Facebook, ADP & Viacom

This morning we note that airbnb is reportedly raising $100m at a $1b valuation, which is a huge jump over its last fundraising round of around $7.2m. We decided to look at Facebook's ad business vs. LinkedIn's (NYSE:LNKD), and we find that Facebook's ad business is worth around 30x more than LinkedIn's since 60% of our valuation comes from ads while only 28% of LinkedIn's does. We look at ADP's ( ADP ) number of small business payroll clients given the role small businesses play in the US economic recovery. Finally, we test reader's knowledge by look at which channel contributes the most to Viacom's (NYSE:VIA) stock.

Facebook - Company of the Day

LinkedIn (NYSE:LNKD) and Facebook are two of the best known names for online social and professional networking. We estimate that the online advertisement business accounts for about 28% of our LinkedIn valuation estimate of $3.2 billion while it accounts for 60% of our Facebook valuation of close to $45 billion. This implies that Facebook's online advertising business is about 30X more valuable than LinkedIn's. As a side note, this also implies that Facebook's revenue stream looks a lot like Google's (NASDAQ:GOOG), which earns just over 70% of our near $190 billion valuation from advertising - which is about 7x the size of Facebook's ad business.

ADP - Number of Small Business Payroll Clients

ADP, a leading provider of human resource outsourcing and payroll services in the U.S., serves many large businesses and also caters to a sizeable number of small businesses (fewer than 50 employees). The firm recently announced that its popular payroll management platform for small businesses, RUN Powered by ADP, is now also available for the Android smartphone operating platform.

Quiz of the Day

Which of these channels contributes the most to Viacom's stock value?

  1. VH1
  2. Comedy Central
  3. MTV
  4. Nickelodeon

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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