Is Facebook Profitable?

Ahsen · 20th Jun 2009, 03:12 AM

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?

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Adrian Wong · 20th Jun 2009, 09:37 PM

Lots of businesses aren't profitable from the beginning and some don't actually make money for years. Then boom! once they hit a critical mass, they start churning tons of money for their investors.

What's your interest in their profits anyway?

peaz · 21st Jun 2009, 01:05 AM

I doubt they are, and so is Youtube and many more of these new Web 2.0 sites. Like Adrian says, it takes a while before they hit the critical mass and even then, it still needs a proper business model to drive those ka-chings in. Just relying on banner ads alone would not sustain the entire operations. Also, many of these companies are funded by venture capitalist, just wainting for the bigger companies to acquire them.

Lacus · 24th Jun 2009, 01:45 PM

hmm, done an assignment regarding on facebook recently..it seems some companies actually use facebook to promote their stuffs...hehe, so i doubt that facebook is not getting ka-ching atm...tons of brands do that, google it can find di xD...forgot what was the topic about again *goes back studying :/*

20th Jun 2009, 03:12 AM	#1 (permalink)
Ahsen Newbie Join Date: 20 Jun 2009 Posts: 1 Reputation: 0 Rep Power: 0	Is Facebook Profitable? 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? __________________ Signature deleted Last edited by Ahsen : 27th Jun 2009 at 11:50 PM.

20th Jun 2009, 09:37 PM	#2 (permalink)
Adrian Wong Da Boss Join Date: 10 Oct 2002 Location: In front of my ASUS F8V notebook! Posts: 32,301 Reputation: 3574 Rep Power: 75	Lots of businesses aren't profitable from the beginning and some don't actually make money for years. Then boom! once they hit a critical mass, they start churning tons of money for their investors. What's your interest in their profits anyway? __________________ Dr. Adrian Wong Tech ARP \| Blog @ Tech ARP \| The Free Trade Zone DYKT : The only offshore account I have is at the sand bank? We need PROGRAMMERS and TECHNICAL WRITERS! Contact us if you are a hot shot programmer or technical writer! My items for sale : 50x SD Card \| Memory Stick PRO \| Cyclone Energy Saver \| Seiko SS watch \| Tiger/Carlsberg beer jugs \| Travel Speakers \| Motorola V600 \| Nokia N90 SOLD! \| New Lowepro Mini Trekker AW Other items for sale @ the FTZ : Zalman CNPS9500 LED @ $20 \| Zalman CNPS7700 Cu @ $20 \| Zalman CNPS7000 Cu @ $20 \| Swarovski bracelet watches \| Dell 17" LCD \| Hi-Fi speakers \| English DIVX movies \| HP LaserJet toners! \| Office chairs

21st Jun 2009, 01:05 AM	#3 (permalink)
peaz ARP Webmaster Join Date: 13 Oct 2002 Location: http://atpeaz.placidthoughts.com/ Posts: 8,584 Reputation: 1673 Rep Power: 32	I doubt they are, and so is Youtube and many more of these new Web 2.0 sites. Like Adrian says, it takes a while before they hit the critical mass and even then, it still needs a proper business model to drive those ka-chings in. Just relying on banner ads alone would not sustain the entire operations. Also, many of these companies are funded by venture capitalist, just wainting for the bigger companies to acquire them. __________________ Ken Ng Tech ARP Follow me at Twitter Shoot and Earn Money from Stock Photography

24th Jun 2009, 01:45 PM	#4 (permalink)
Lacus Super Active Join Date: 28 Mar 2008 Location: Some gundam factory o.o Posts: 1,302 Reputation: 180 Rep Power: 4	hmm, done an assignment regarding on facebook recently..it seems some companies actually use facebook to promote their stuffs...hehe, so i doubt that facebook is not getting ka-ching atm...tons of brands do that, google it can find di xD...forgot what was the topic about again goes back studying :/ __________________ GUNDAM 00[Intel Xeon E3110 E0 Stock\|Asus Rampage Maximus Formula (Rampage Bios Mod)\|Gigabyte HD4850 512MB GDDR3+T-Rad2\|4x2gb DDR2 1000Mhz OCZ SLI-Ready Edition\|Western Digital WD6400AAKS 640GB\|Creative X-FI XtremeMusic\|Creative Inspire P5800\|Silverstone Strider ST56F\|Acer X233H\|Keyboard=Microsoft Sidewinder X6\|Logitech MX518\|Lian Li PC-7YCF]

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