¶ … Wall Street Journal Online was selected due to its discussion of Gross Domestic Product (GDP) regarding the United States and globally. Facebook, Inc. and Alphabet, Inc., the parent company of Google, have very high market valuation, in large part due to their dominance of the mobile advertising market. However, the author believes their very high combined valuation may be unduly optimistic, based on the current percentages of U.S. GDP and global GDP spent on mobile advertising and projected percentages of GDP spent on mobile advertising by 2025. Gross Domestic Product (GDP) is an important facet of Macroeconomics because it is a basic tool for determining a nation's and the world's productivity, income and expenditure. In this article, GDP is discussed, expenditures in particular are discussed and the dramatic effect of adjusting expenditures is shown when examining Facebook's and Alphabet's glowing combined market valuation.
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"Facebook and Google: The $230 Billion Question; Mobile-Advertising Growth Has Driven a Stunning Rise in the Two Companies' Market Values, but Investors May Be Taking a Glass-Overflowing View" (Gottfried) is an April 12, 2016 Wall Street Journal Online article that examines the possibly overoptimistic market values of Facebook, Inc. and Google's parent company, Alphabet, Inc., considering the portion of global Gross...
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