Facebook: The IPO That Wasn't Nor Will Be

Facebook is trumpeting huge user-growth numbers, but as questions over its proper valuation swirl, some industry observers argue that the social-networking Web site's best shot at being an Internet IPO has passed.

Two camps are at war over Facebook's proper valuation, and each side presents a compelling argument. On one hand, an investment from Microsoft (MSFT Quote) in October 2007 pegged the company's total value near $15 billion. On the other hand, tech companies with stronger revenue streams and better advertising models, such as Google (GOOG Quote), have seen their share value slashed in half since that valuation was made.

Hot?

So who's to be believed? Looking at Facebook's user data, it's hard to not be impressed. Founder Mark Zuckerberg said Wednesday that the site now has 150 million monthly active users, with almost half of them are using Facebook every day. That's up from 100 million active users, a milestone that Facebook reached in August. ...