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Facebook lost 7% of their value in one day today. I don’t use them, perhaps I’d feel differently if I did, but they seem very vulnerable to me given their reve
by grey-area 8y ago
Facebook lost 7% of their value in one day today.
I don’t use them, perhaps I’d feel differently if I did, but they seem very vulnerable to me given their revenue is ad based and they have massive credibility and reputational problems amongst both advertisers and readers. Google has a broader base but are still vulnerable as the money comes from ads, and that can dry up quickly.
- cobookman 8y agoEven if Facebook has a 50% reduction in rev, they'd likely be breaking even, and not touch their massive cash reserve. 2017 earnings: * 40B of Rev * 5.5B cost to rev * Gross profit of 35B * Operating Income of 20B https://www.nasdaq.com/symbol/fb/financials?query=income-statement https://www.nasdaq.com/symbol/fb/financials?query=income-sta...
- grey-area 8y agoThanks for the figures, maybe they are too big to fail at this point. I’ll be interested to see how they weather the coming downturn and multiple scandals.