Facebook’s share price was up 2.4% on Monday taking its market cap above $250bn just three years after its IPO and eleven years after it was founded. Bloomberg and other sites are lauding Zuckerberg and co for beating current record holder Google’s eight years from IPO to $250bn valuation. Those with long memories will know that Facebook went public with a much larger valuation than Google ($104bn vs $23bn) so the more apt comparison is Facebook’s eleven years from founding to $250bn with Google’s fourteen years. Still great though.
What impresses me most about Facebook is the way they’ve done it. As you might have read in the Lefsetz letter today
Once upon a time Facebook was a place to connect with your friends.
Now it’s where you go for information…news, video, even music video.
What’s amazing about Zuckerberg is he’s willing to admit he’s wrong and change course and constantly improve his product.
And there’s the amazing shift from desktop to mobile too.
Change is, of course, happening faster and faster all the time, so it’s likely the next record holder for time to $250bn has already been founded. What’s also likely is that the founder will have an even greater appetite for radical change and experimentation than Zuckerberg, who in turn is proving to be more radical than his slightly older counterparts at Google and Amazon. And Bezos and Page are in turn more radical than Gates and Ellison. There’s a lesson here….