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Why? It's revenue, not profit. If Facebook is actually "almost profitable", then my little 8-hour iPhone app is more profitable than Facebook. Think about tha
by JabavuAdams 18y ago
Why? It's revenue, not profit.
If Facebook is actually "almost profitable", then my little 8-hour iPhone app is more profitable than Facebook.
Think about that. All those people; all that effort; all that busy-work. It's just wealth redistribution.
Now, investors expect that Facebook will scale (financially) better than Jaba's little iPhone app that you've never heard of -- once it starts making money it'll make heaps of money.
Thing is, if they're wrong, it's just a huge misuse of capital. OTOH there is a value to having subsidized geek nirvanas (to the geeks, not the investors).
- tokenadult 18y agoIt's revenue, not profit. Yes, the distinction between revenue and earnings is what makes all the difference. Investors invest to end up with more money than they put into a business enterprise.
- omouse 18y agoThey're subsidzing the training of several programmers who otherwise might not have had to deal with such huge databases and systems. This is valuable because whenever Facebook dies or when the programmers leave, other companies will be the richer for it. So not a completely huge misue of capital if you're thinking about the whole of society, but definitely a misuse if you're an investor in Facebook heh.