patrick.net

You forgot zynga. I wonder if this could become the biggest company in the world shortly thereafter. It wouldn't take much to top apples market cap if they're starting it off with a 100B market cap.

They have nothing more than peoples information + a wall for people to write on, this company doesn't even have much staying power.

Go facebook. Funny, how people will diss you for not being "on facebook" Good social preoccupation though, people are bored, give em something to play around with on the computer which does not require much thought. Not being real social, I don't plan on setting up an account.

pkennedy says

They have nothing more than peoples information + a wall for people to write on, this company doesn't even have much staying power.

Think about the superbowl, the type of money advertisors will pay for 30M viewers.

With Facebook, you have, say 500M users spending hours everyday. Not only are there tons of users, but they are the sticky type. They literally can have a superbowl everyday.

Simply an amazing company. 1.5B operating profit on 3.8B Gross or 40% operating margin. They have the type of business that can get 60% operating margin as each incremental revenue does not cost them anything.

Do you guys think Facebook is a worthy purchase? I kind of understand that they make money by selling personal information, but I don't know how much money they actually make which makes me weary on the issue of buying their stocks.

I'll add to what Fortwayne says by injecting...

Not only that, but Facebook is this decade's "Petrock".
Compound the Petrock effect with Facebook and Google's practices, of selling private info. It's really only matter of time before people push back. It will be in fashion to not be on Facebook or other social networks for that matter.

Or even if that doesn't do them in, new laissez-faire semantics of future internet standards will. Example...

Much of the new programming design, patterns and practices are designed to intrinsically bake much of Social Networking attributes into new technologies and standards. By that I mean, the future will have Facebook or Google like services built into the web architecture. Where there wont have to be a centralized repository of information. But rather, the information will be stored collectively. Whether data resides on the cloud or on a desktop hard drive.

We'll all be connected with or with out Facebook or Google.
At which time those services will go the way of the milk man.

SFace says

Simply an amazing company. 1.5B operating profit on 3.8B Gross or 40% operating margin. They have the type of business that can get 60% operating margin as each incremental revenue does not cost them anything.

Advertising... thats all. There is only a limited amount of advertising dollars that can be spent each year.

The GOP says

Much of the new programming design, patterns and practices are designed to intrinsically bake much of Social Networking attributes into new technologies and standards. By that I mean, the future will have Facebook or Google like services built into the web architecture. Where there wont have to be a centralized repository of information. But rather, the information will be stored collectively. Whether data resides on the cloud or on a desktop hard drive

Its called CRM, customer resource managmenet.. and its been around for some time since the early 90s. But the idea goes back to the 80s.

chanakya4773 says

LinkedIn is very similar in profession network and i am not seeing them making tons of money.

On the contrary, companies are willing to pay good money for recruitment purposes. Most High-tech Silicon Valley companies pay a bonus of $1.5k to $3k per hire. And they pay up to ten thousand in referral bonus for a V.P.

LinkedIn's position isn't easily usurped. Many people added their work information and very rarely checked the account again. It took a long time to accumulate this many users.

@sface

The problem is people don't leave facebook. They won't do anything. Everyone is trying out advertising on facebook, everyone is trying to create a facebook hook, but no one is getting there. Every large media player is trying to figure out what to do with facebook, and everyone is failing. The best you can do is get people to like your page. Facebook is a massive disappointment.

Something like google was a dead ringer, people put in 5 cent bids when it came out and made money the next day. It was a cash making machine for everyone who tried it.

I haven't heard of any facebook sucess stories yet, and that's with the best and brightest working on strategies. The difference is you could put up an ad on google and make money tomorrow, but the best can't make anything off facebook. views are not all the same and with the internet you can *really* dig into what you're paying for. You can calculate out which hours of the day are giving you the best return on value, from which part of the country, from gender and age preferences. It's possible to dig down and deep and see if you're making money and how to fix it. Facebook allows you to go even further, you can target exact matches, but you'll get nothing.

everything says

Funny, how people will diss you for not being "on facebook"

What loser would do that?

FortWayne says

Do you guys think Facebook is a worthy purchase?

I think it's a giant ponzi scheme. People are going to get fleeced when they realize that Facebook doesn't actually produce anything and its customers can easily go elsewhere and Facebook/Twitter advertising doesn't work. It's all noise.

Have you ever bought anything because you saw it on Facebook or because a friend tweeted about it? Then again, sometimes I underestimate just how stupid the average person is.