Interesting. Not only is Facebook the purveyor of wasting time, it’s also barely a profitable company compared to others. My colleague Owen Weldon over at DigitalJournal.com posted a short but interesting article regarding the social networking juggernaut’s revenue model.
Facebook reported that it made only $64 million in profit on $1.59 billion in revenue. That works out to about $0.50 per user each month through revenue. That’s amazing considering most people spend hours on the website, had an astronomical IPO and even a motion picture was made about it.
What’s worse is that when Facebook is compared to other Internet giants, like Amazon, it’s hardly a profitable firm.
It’s been long argued that it’s a waste of an investment, especially considering that it doesn’t really do anything other than connect people and produce narcissistic teenagers and arrogant adults.