Taken from:
http://www.washingtonpost.com/business/on-small-business/why-facebook-may-not-be-a-wise-investment/2012/02/03/gIQA6P7UnQ_story.html
The article notes that Facebook makes about 85% of its revenue from advertising. It further suggests that that is a lot of dependence on one source of revenue and that while in the short run emotional trading may happen as people want to "own a piece" of Facebook, in the long run, that heavy dependence on advertising could weaken.
For a bystander - I've seen the rise of Facebook (and other social networking sites) and at the time think not much is going to slow it down; but also as a realist, think that in (say) 10 years, Facebook maybe passe and the 'next big thing' will be getting the advertising dollars (look at MySpace for a similar example)
http://www.washingtonpost.com/business/on-small-business/why-facebook-may-not-be-a-wise-investment/2012/02/03/gIQA6P7UnQ_story.html
The article notes that Facebook makes about 85% of its revenue from advertising. It further suggests that that is a lot of dependence on one source of revenue and that while in the short run emotional trading may happen as people want to "own a piece" of Facebook, in the long run, that heavy dependence on advertising could weaken.
For a bystander - I've seen the rise of Facebook (and other social networking sites) and at the time think not much is going to slow it down; but also as a realist, think that in (say) 10 years, Facebook maybe passe and the 'next big thing' will be getting the advertising dollars (look at MySpace for a similar example)
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