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posted by takyon on Monday April 16 2018, @08:01AM   Printer-friendly
from the BUY-LOW! dept.

Why You Should Buy Facebook While It's In Crisis (archive)

In spite of the headlines, the hearings, and the hashtags, it does not look like many users are leaving Facebook. A survey conducted by Deutsche Bank concluded that "just 1% of respondents were deactivating or deleting their accounts." If the survey is representative of Facebook's 2 billion users, then 20 million users might leave. This may seem like a big loss, but it means 99% of users are staying.

Doug Clinton, the managing partner of Loup Ventures, estimates that each active user generates about $21 in profits for Facebook each year. The loss of 20 million users would therefore reduce Facebook's earnings by roughly $420 million. Facebook's pretax income last year was $20.5 billion. Does a 2% drop in pretax income justify a 9% loss of market value? I don't think so.


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  • (Score: 4, Interesting) by Phoenix666 on Monday April 16 2018, @11:23AM

    by Phoenix666 (552) on Monday April 16 2018, @11:23AM (#667578) Journal

    It doesn't. There was a faint flicker of novelty to hear from the kid I went to the third grade with and haven't seen since, but I don't talk to him because we have nothing else in common.

    So hearing from them about their lives is interesting for social scientists who might be sitting on top of all that data and watching patterns evolve in response to events, but it has no real value for the rest of us.

    Yours is the right move. Make real connections with real people in the real world. (Social science says that's about 120 people, but that's always been fine throughout human history.) Use your time to do what you want to do, not to cavil about others thrice removed.

    --
    Washington DC delenda est.
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