|
Their valuation is 100x earnings, which is fucking nuts. They've already got half the people on the planet, and there's a short supply of planets. Their ad targeting is pretty lame in ROI terms. Where's the tens of billions in revenue growth gonna come from?
80% of Google's revenue comes from search even though they own ad networks that operate all over the web and mobile. If you look at Facebook's filing, their revenue per user is mediocre and their growth has come from adding more users. They're nearing market saturation and growth is slowing. There's no indication that Facebook has been able to monetize its users especially well. 12% of their revenue comes from Zynga, a company that makes money by selling virtual farm animals. They're making money from their scale and there's not much more room left to grow.
Short FB
|