Is Facebook Profitable?

Discussion in 'Internet & Networking' started by Ahsen, Jun 20, 2009.

  1. Ahsen

    Ahsen Newbie


    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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    Last edited: Jun 27, 2009
  2. Adrian Wong

    Adrian Wong Da Boss Staff Member

    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? :D
  3. peaz

    peaz ARP Webmaster Staff Member

    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.
  4. Lacus

    Lacus Newbie

    hmm, done an assignment regarding on facebook 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 :/*

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