The Facebook – Boom and Bust?

So Mark Zuckerberg is rich beyond Greece’s wildest dreams. An 8 year old Company gets to be ‘worth’ £63bn, taking the creator Zuckerberg into the rich list with a $21bn stake.

So whilst Greece scraps around for some pennies for the milk bill Zukerberg can buy a new hoodie without so much as blinking.

But I can’t but help wonder how long the euphoria will last. Generally speaking companies need to create revenue to prop up profit and thus dividends for those shareholders. It was interesting yesterday that the share price went from $37 to $45 but then slipped back to the starting price.

I don’t use Facebook a lot. The squash team I am part of do have a private page where we post rude messages about each other and look for games, sort fixtures and teams for forthcoming matches. The rest of Facebook is accidental stuff for me. I see people I know – occasionally press ‘like’ but rarely engage in long conversations.I put a few pictures up, but that’s like the worst eight words in the English language – “Would you like to see my holiday photographs”?

But I never click on the adverts. Nor do I pay for my Facebook experience. Nor would I. In fact occasionally I have considered shutting it down. If it weren’t for the squash stuff, I probably would….

So where is the rich revenue stream? Is it just me who wants my user experience for free? Presumably someone is paying Facebook Inc. some cash somewhere? But are the results measurable? I guess they must be.

But I can’t help but wonder if Zuckerberg sold at the right time. And that the only way is down?

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