Why Facebook's $100 Billion Valuation Will Come Back To Haunt It

mark zuckerberg

Photo: Facebook Roadshow

In the last three years Facebook has been able to go on an incredible poaching run, stealing and acqui-hiring some of the most talented people in technology.After the company IPOs it’s going to be much harder for Facebook to attract the same sort of talent.

The number one reason is that the lucrative stock options Facebook used to be able to offer people are going to be off the table.

Yes, it will still be able to offer new hires stock options, but at the company’s IPO price, those options are nowhere near as valuable as they once were.

Facebook’s stock is going to come out hot, sporting a $100-$150 billion valuation. At that valuation, for the company’s stock to double, it’s going to have to generate a lot more revenue.

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