Long Term Profitability Of Facebook's Business Model
So Facebook have a lot of money, but how long will it last?
As we know, there are many Web 2.0 companies, aimed at what can only be loosely referred to as "social" networking, which I believe are overvaluing themselves, Snapchat at $3 billion for instance and Instagram being bought by Facebook themselves at $1 billion.
I for one think this all might be another bubble waiting to burst and personally I don't think Facebook are currently diversifying enough to be sustainable in the long term.
If we look at other the other major companies mentioned in this article, such as Google and Amazon. Google are expanding into many different markets, Android being a clear success story of that. Amazon are pioneering the online retail sales market, with the obviously dubious drone idea but the much more realistic Amazon lockers.
Facebook however, initially didn't see a market for mobile social networking, and they took their time before coming around to that idea.
All this is of course is referring to 10-15+ years ahead, but surely it's only a matter of time before the bubble bursts.