Market Overview

How Valuable Is Your Facebook Data? Less Than You Think

How Valuable Is Your Facebook Data? Less Than You Think

In the ongoing Facebook, Inc. (NASDAQ: FB) data security scandal, a key question could be overlooked: just how valuable is a user's data? 

The Analyst

Former Piper Jaffray research analyst and Loup Ventures' managing partner Doug Clinton.

The Thesis

In 2017, Facebook generated around $19.5 billion in the U.S. market, while its average monthly active user base stood at 237 million, Clinton said in a blog post. Each active user accounted for $82.21 in ad revenue, which gives a rough estimate of "what your data is worth," according to Loup Ventures. After subtracting a 50-percent operating cost estimate and accounting for taxes and other expenses, this likely leaves Facebook with around $20.72 in value from each U.S. user.

Clinton compared his findings with a survey of 500 Facebook users who were asked how much they think their data is worth. Only 27 percent of those surveyed estimated the true value of their data to be between zero and $25, and 41 percent said their data is worth up to $100. Almost 44 percent of those surveyed think their data is worth north of $500 per year.

The findings suggest a disparity between what users think their data is worth versus its actual mathematical value on paper, Clinton said. Accordingly, Facebook's data privacy scandal is "more about the the sanctity of our data" than anything else, he said.

Price Action

Shares of Facebook closed up 0.46 percent at $157.93. 

Related Links:

Morgan Stanley Isn't Too Worried About Facebook Cutting Ties With Third-Party Data Providers

Tech Strategist: Twitter Is The Main Beneficiary Of Facebook's Privacy Scandal

Latest Ratings for FB

Sep 2019Initiates Coverage OnBuy
Aug 2019AssumesBuy
Jul 2019MaintainsOutperform

View More Analyst Ratings for FB
View the Latest Analyst Ratings

Posted-In: Douglas Clinton Loup Ventures Privacy Scandal social mediaAnalyst Color Analyst Ratings Tech Best of Benzinga


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WENMorgan StanleyMaintains22.0
XGNCantor FitzgeraldInitiates Coverage On18.0
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