Linked by Howard Fosdick on Wed 5th Sep 2012 05:24 UTC
In the News Remember the dot com debacle of a decade ago? Well, it's back, this time in the form of Facebook. Since its high-profile public offering last May at over $38/share, FB is now down to about $18/share. Management is finding that running a public company is very different than one privately held, as people variously blame Mark Zuckerberg (or not), CFO David Ebersman, lead IPO underwriter Morgan Stanley, and even the NASDAQ stock exchange. The real problem, of course, is that Facebook went public even as its business model desperately searches for new revenues. Let's just hope they don't pull a Digg and fatally redesign the whole site in response.
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RE[4]: Comment by stabbyjones
by vaette on Wed 5th Sep 2012 13:40 UTC in reply to "RE[3]: Comment by stabbyjones"
vaette
Member since:
2008-08-09

The costs of running Facebook are small (great scale, not terribly complex software involved) and they have something like a billion active and rather deeply engaged users. They also know more about their users than just about any other service in the world. If Facebook cannot make money on advertising then the advertising model for services on the internet is truly and finally dead.

Which is a possibility, but I am more likely to bet that Facebook will in the end be reasonably profitable.

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