Nation of Beancounters

How much is facebook making? $4 a user.

Posted in Uncategorized by Navin Kumar on January 22, 2012

Here is the source.

$2.5 billion over 9 months is about $3.3 billion a year.

Divided by roughly 800,000 users.

This is in contrast with Google’s $24 billion revenue per year.

(I know, I know; they’re not comparable; way different products and cost structures; that’s revenues, not profits etc. I’m just giving you the numbers.)

What’s the take away? Exciting is not the same as important? Monopoly is overrated as a problem? Or we simply don’t know how to price the social return on internet-generated innovations?

(Hat tip/bonus: is Timeline an attempt to get people to click on ads more?)


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