One of the intangibles for Facebook, as Martin sees it, is the company’s brain power. Facebook has “the smartest people in America with the highest risk tolerance. We’ve seen [employee] exoduses from Yahoo, from Google, from the more established Silicon Valley juggernauts into Facebook, and they’ve had the pick of the litter for 3 years.”
Not everyone sees Facebook as positively as Martin, however.
In fact, Michael Wolff, contributing editor at Vanity Fair and columnist for The Guardian, wrote about what he calls “The Facebook Fallacy”:
At the heart of the Internet business is one of the great business fallacies of our time: That the Web, with all its targeting abilities, can be a more efficient, and hence more profitable, advertising medium than traditional media. Facebook, with its 900 million users, valuation of around $100 billion, and the bulk of its business in traditional display advertising, is now at the heart of the heart of the fallacy.
Wolff made his case in an interview with CNBC’s “Street Signs.”
—By CNBC’s Matthew J. Belvedere
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Disclosure information was not available for Laura Martin, Michael Wolff, or their employers.