Facebook surpasses Google worldwide

[Theo]

It's now official.

 

[dcristo]

Shame they still can't figure out how to monetize it though.

 

[Theo]

Shame they still can't figure out how to monetize it though.

In Q2, Facebook generated $1.18 billion dollars in revenue, a 32% year-to-year increase.

 

[dcristo]

That's a bit misleading though. Over the last year they had their IPO and they've just started monetizing it.

 

[Theo]

That's a bit misleading though. Over the last year they had their IPO and they've just started monetizing it.

The revenue has nothing to do with the IPO.

 

[dcristo]

It has everything to do with the IPO. How do you think they will please shareholders?

 

[Theo]

It has everything to do with the IPO. How do you think they will please shareholders?

No, my friend. If anything, Facebook stock is down since the IPO. Facebook revenue comes from ad streaming.

 

[dcristo]

OMG dude I can't believe we are even having this convo. Yep, FB IPOed to prove to shareholders it can't generate any money. Of course it's all about revenue, especially since they went public!

 

[Theo]

You seem to be in disbelief that Facebook is actually profitable.

 

[Shane]

Facebook has some major issues in front of it. The biggest selling point for stockholders was the 955 MILLION "active users".. however analysts are quickly realizing that a significant portion of those profiles are duplicates or inactive.

Facebook is an awful investment. Think about Myspace they were the biggest, baddest social network for a few years; until it became "un-cool". The same thing can and will happen to Facebook if they don't find a way to extend functionality passed their own website. They have the chance to leverage their user-base to become a web portal, similar to what AOL was in the early days of the internet. That's really they only way they can maintain their business in the long term.

 

[Theo]

Actually, you'd be surprised how much footprint Facebook beholds, among tens of thousands of app developers. The *only* thing Facebook needs to worry about, is retaining the loyalty of its users. There is no competition; Google+ has 50 million users. Stock value aside, Facebook is the most visited web site on earth. The average user spends hours (not minutes, hours!) in total daily on it.

 

[EM @MAJ.com]

The most visited sites on earth, but their stocks values cut in half. As investors, this is very disappointing results.

 

[Shane]

Actually, you'd be surprised how much footprint Facebook beholds, among tens of thousands of app developers. The *only* thing Facebook needs to worry about, is retaining the loyalty of its users. There is no competition; Google+ has 50 million users. Stock value aside, Facebook is the most visited web site on earth. The average user spends hours (not minutes, hours!) in total daily on it.

Remember, Myspace essentially died overnight. They don't have a sustainable business model YET. They definitely have the opportunity to evolve to a gateway but until they fill that void they will continue to have problems. I have to say it's pretty exciting to watch a website grow into a massive company that quickly.

 

[Theo]

Remember, Myspace essentially died overnight. They don't have a sustainable business model YET. They definitely have the opportunity to evolve to a gateway but until they fill that void they will continue to have problems. I have to say it's pretty exciting to watch a website grow into a massive company that quickly.

I understand that you're not a fan of Fb, but compare apples to oranges: MySpace had nowhere close to the same user base as Fb, it was primarily geared towards music, groups and musicians and never incorporated technology to collect such a vast amount of personal data on its users. MySpace is a glorified Geocities page, if you ever used it in the 90s. So I hardly see Fb dying overnight. Don't forget also that China is blocking Facebook officially; when relations get ironed out and China's armies of Internet users rush to register, that'd be a corporate apocalypse. PS I don't own Fb stock.

 

[Gerry]

PS I don't own Fb stock.

It appears LinkedIn is now going ala FB with upgrades, following people (vs. connecting) and blogs.

 

[Vincent]

Soon it will be dnf.com.

For now, wordpress.com is #22

 

[dcristo]

You seem to be in disbelief that Facebook is actually profitable.

Not at all. It's just misleading to look at the previous year's revenue growth to gauge how the company is doing.

 

[Theo]

Not at all. It's just misleading to look at the previous year's revenue growth to gauge how the company is doing.

Maybe you didn't comprehend what I posted? Here it is, one more time, with bolding for emphasis:

In Q2 (of 2012), Facebook generated $1.18 billion dollars in revenue, a 32% year-to-year increase.

In other words, a year ago, they made 32% less. How is this "misleading"? That's how annual reports are made.

 

[dcristo]

It's misleading because of the IPO and their motivation to monetize the site. I thought that would have been obvious.

 

[Theo]

It's misleading because of the IPO and their motivation to monetize the site. I thought that would have been obvious.

LOL ok. Move on to Area 51.