You don't have to pay to use the site.
Only maybe .1% of the user base pays Facebook by buying credits to use on Farm ville and other apps.

That is how the site is worth so little, the users are not paying to get on the site. Only profits that are coming in are from advertising.

Facebook, if I can value it, probably only worth a couple dollars since they are not a business and just a social website that makes its profits by advertising and some other means.

@MRHARDON - A lot of their value comes from the massive amounts of demographic, sociographic, and psychographic obtained via the millions of users setting personal interests, age, gender, work and school info, etc. As the saying goes, if you don't pay for a product, you are the product. I don't know the terms of use though but I am pretty sure FB somehow finds a way to sell that kind of information to 3rd parties that then try and push stuff to us. The data is also used for generating customized ad demographics (for those paying customers).

I do think the said value was too high though.

Forgive me if I misinterpreted your question, but Facebook is by no means only worth a few dollars. Currently each share is worth $31.91 and there are an estimated 2.5 billion shares on the market. That means the worth of the company is equal to 31.91 * 2,500,000,000 = around 80 billion. The whole problem with these stocks is that FB started off at a value of 100 billion... far overpriced. Now it's price is falling, people wondering wtf happened. I think.

@jihaad

not everyone in this world is as computer savvy as you think they are. google makes it way more simpler to get around the internet. thats why google is the most used search engine on the entire internet.

@silent
as said by people below me, facebook doesnt offer much in terms of revenue. if it doesnt do that, people wont want it. would you want something that does nothing or would u rather buy something that people need that has more than one way of generating income.