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
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?
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.
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 :/*