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Doesn't deleting a ton of fake profiles have implications for FB valuation and revenue?
by qaq 9y ago
Doesn't deleting a ton of fake profiles have implications for FB valuation and revenue?
- thisisit 9y agoThey can always go the Twitter way and say they were miscounting user growth during a call where they deliver good revenue: https://www.recode.net/2017/10/26/16527682/twitter-earnings-q3-october-2017-jack-dorsey-twtr https://www.recode.net/2017/10/26/16527682/twitter-earnings-...
- jonwachob91 9y agoI doubt it. User growth is used as a metric to measure future ad revenue. Fake profiles aren't going to generate a lot of revenue from those ads. Facebook would simply need to make a statement about deleting a bunch of fake profiles, but they don't expect revenue to dip. However, that is not the case for a pre-revenue or pre-profitable business. Those startups are dependent on VC funding, they might lie about users and usage to get more funding (see Silicon Valley Season 3). *This is 100% inappropriate and should not be done. You will burn credibility with investors, for your current venture and any future ventures. It's better to shut down a venture and move on, than to lie about your metrics.
- cwkoss 9y agoAlso, if they are knowingly sold ad impressions to bots' eyeballs (seems like they did), they committed fraud.