Facebook's latest pre-IPO filing shows the social network giant ramped up to 901 million users, who produce 3.2 billion likes and comments a day. Oh, and it said its net income slipped on the year as operating expenses ballooned. The updated S1 filing covered the period up to March 31, and bombarded potential investors with …
Better than I thought
"431 active users last year to 901 million this year"
I thought Facebook was reaching a growth ceiling, but a 20,000% increase seems to indicate otherwise :).
$200 million profit?
So with one of the more recent conservative valuations of $50 billion the ROI will be 250 years.
Almost looks like Zuck paid for Instagram about what anyone with any sense would pay for FB.
The other weak what?
Sealed the other weak. Really.
Nobody learned a thing
In what we will in the future call the first dotcom boom and bust, lots of successful companies lost a lot of money by believing that having lots of users was a good thing. This was because you multiplied an arbitrary constant by the number of users, and it gave you a 'value'. Reality is it gives you a cost. The more successful YouTube it, the more it costs Google to run it, for instance. Anyway, lots of companies changed hands at stupid money because it was a (pretty flipping blatant) bubble. It turned out a registered user was not worth the $1000 'value' fantasists said they were.
Anyone remember Marconi? They put cash in the dotcom boom, now they are owned by the French company Thales. BT made £100/sec profit at one point, they spunked a load of it on dotcom nonsense. Murdoch's balls were $650M or something lighter for this thing very few people will remember as relevant 'MySpace' (GeoCities++). Friendsreunited seemed like a good buy for a once rich ITV.
Clearly we are much smarter now, and would never overvalue a company which could be irrelevant within a year if the tides turn (as fads/fashions do)! Me, I'm going back to pork bellies futures and tulip bulbs - at least you know your cash is as safe as houses.
Sounds a winner!
Where do I sign up?
I put an ad for Google+ on my Facebook status update