3 ms·
They really don't yet. They have more traffic than yahoo but somewhere between 5-10% the revenues. There are a lot of theories as to how they will make money, b
by mattmaroon 17y ago
They really don't yet. They have more traffic than yahoo but somewhere between 5-10% the revenues. There are a lot of theories as to how they will make money, but those schlocky ads you saw will at most be a small portion of it if they ever hit Google-sized revenues.
- jacquesm 17y agoFacebook is in fact profitable.
- tokenadult 17y agoFacebook is in fact profitable. In the AOL sense, or in the Walmart sense? I thought the latest reporting still suggested that there isn't positive return for any of Facebook's investors yet.
- jacquesm 17y agoCashflow positive. ROI for investors will have to wait for a bit I think, given the sum of money involved. Still, I found it quite surprising that they were already in the black.
- tokenadult 17y agoAnd of course profit is related to earnings more than just to revenue. It's not clear to me that Facebook's services are inexpensive enough to run and compelling enough to users over the long term to build a profitable business.
- mattmaroon 17y agoThat's part of the problem. Even in web services, a 90% profit margin is unrealistic. So if you're doing the same volume as Google (operating margin of around 30%) but making only 5% RPU, you're probably not profiting much. That's a lot of why Facebook is only barely profitable, whereas Google was making a killing when it had their traffic levels.