• Facebook’s user base is huge (845 million) but its growth rate is slowing. The main opportunities for growth appear to be in Asia.
  • Facebook make most of their revenue from advertising (87%) and the rest from payments for app use. As a result, last year they made $1 billion.
  • Zygna earn revenues 25% of Facebook’s revenues.
  • The biggest vulnerability is that Facebook is a desktop product for monetization purposes. Its mobile products only help in referring users to the desktop product. Basically, what this means is that purchasing Facebook shares is taking a company-specific bet that it will solve the mobile monetization problem. This it admits.
  • $100 billion is a nice round number. It translates to earning about $5 per user in the near term. Google claim to earn $10 per Android user. You do the math.

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