Is Facebook Profitable? 16 replies

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#1 9 years ago

Hi, I’m new in this forum and this is my first post. While surfing I came across a discussion where some say Facebook is not profitable yet. How this can happen? According to them it sells stock to cover expenses. What do you think? Any idea?




Commissar MercZ

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#2 9 years ago

Well if you consider the original makers were college students who went from nothing to making a site that brings in millions of dollars, then yes.

They heavily benefited off users leaving myspace, usually due to the bad flak the site was receiving from parents and the press.

I'm not really sure what you are talking about, because Forbes has estimated that Facebook brought in a revenue of 300 million last year.

What they might be mixing this up with is the fact that the value of facebook stock has fallen due to the rise of Twitter, which is now competing with them for big-name users and advertising revenue.




Freyr VIP Member

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#3 9 years ago

Report: Facebook raises '08 revenue projection | The Social - CNET News

According to that, they earnt 50 Million for 2008 and spent 200 Million so they are making a 150 Million loss which they made good by selling shares.

So yeah, what you were saying sounds about right.

Basically, its hard to run a website on advertising revenue. Ziff Davis Media was going to shut down Filefront because they couldn't make any money out of it.




Commissar MercZ

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#4 9 years ago

Yea, there you go. Freyr wrapped up everything there for you. I knew about Revenue but it makes sense about their current predicament. Server costs and employee wages can't be covered by their advertising revenue.




Revenge VIP Member

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#5 9 years ago

They make a lot of money from targeted advertising. Because users provide information about themselves, such as their favourite hobbies, education etc., they can target ads very specifically. Much more targeted than Google etc. can achieve in searches. For instance, Facebook knows I go to Glasgow Uni, so I always get ads about second-hand textbooks and flats for rent in Glasgow. I also get Dream Theater ads, since I list them as a favourite band.

Also, someone I know has a drum-related product and I showed them the Facebook advertisement system, which allows them to target people who list playing drums as a hobbie.

Very smart.




NiteStryker

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#6 9 years ago

I dont participate in any of these social network sites. But given the popularity I hear about, facebook has to be making lots of money.

Altho Im wondering what happened to the myspace, I knew it was very popular and now its not.




Commissar MercZ

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#7 9 years ago

Myspace is still around but its activity is significantly lower than it used to be. Facebook and Myspace both face issues from Twitter's growth though.




Revenge VIP Member

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#8 9 years ago

I've never seen the appeal of Twitter, since Facebook has the functionality of Twitter built into itself, along with everything else that makes it awesome.




Nittany Tiger Forum Mod

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#9 9 years ago

Like I said in another thread, Twitter = fancy IRC.

I don't do social networks. My mother is on Facebook and middle brother uses MyYearBook, though. Yes, there are more than 2 social networks.




NiteStryker

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#10 9 years ago

I dont get the purpose of twitter. Who the piss cares about anything that is only mentionable in 120 characters?

Watch this video, hilarious.




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