4 ms·
Facebook's income doesn't need to grow linearly with their number of users. They could, instead, look at ways to make more money per user. Since they've been s
by semanticist 16y ago
Facebook's income doesn't need to grow linearly with their number of users. They could, instead, look at ways to make more money per user.
Since they've been spending their time until now focussed on getting lots of users, I'd imagine it's safe to say that they could increase their revenue per user well beyond what it's currently at.
- yoseph 16y agoI hope, for the sake of current investors, they find other ways of monetizing users. But my example is intended to illustrate the overvaluation based on present methods of monetization. Nevertheless, I don't think it's a safe assumption that they could increase their revenue per user well beyond its current level. Generally speaking, it's pretty tough for free services to monetize themselves. The only routes seem to be ads & taking a cut of revenue from apps that run on its platform. Facebook would really have to pull a rabbit out of its hat to increase its revenue per user well beyond its current level. It's certainly not a safe assumption.