Is There a Connection Between a Website’s Value & Company Stock?

On: September 24, 2012

Facebook’s stock was… well… a flop. And, it still is. It peaked at about $38 a share (the day after it was made public), and now, at the time of writing, it’s hovering just over $20. For all of the excitement that was generated around the company’s IPO, not a lot has actually happened.

However, the company’s website has done nothing but soar in value. Okoto can perform quick evaluations of every single site on the web. And, the website valuation results that are showing for Facebook are nothing if not impressive. In May 2012, when Facebook had its IPO, Okoto valued the website at $9,478,800,144.97. In July 2012 (the most recent month for which data is available), the Facebook site was valued at $9,562,446,069.75.

That’s an increase of about $84 million. As stocks fell (by about 50%), the Facebook website grew in value. What gives? Is Okoto using a flawed valuation system? Not at all! The reason for the discrepancy is that the value of a company (its stock) isn’t necessarily correlated to the value of the website. While stock prices may fall, a website might still continue to hold its value. And, vice versa.

Facebook is a great example of a website becoming worth more despite the company’s stock prices falling. The truth is, despite falling stock prices, more people are continuing to use Facebook, which means more hours, traffic, links, advertisements, activity, etc. All of these factors (and many more) go into making Facebook such a highly valued site. In fact, it’s the second most valuable site on the Internet, according to Okoto. The only website ahead of Facebook is Google.

Check out the Facebook page on Okoto for more information about Facebook. Ever wondered what phone number to call to reach the domain administrator? Curious as to how many visitors Facebook receives each day? Okoto has all that and more!

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