Stories
Slash Boxes
Comments

SoylentNews is people

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.


Original Submission

 
This discussion has been archived. No new comments can be posted.
Display Options Threshold/Breakthrough Mark All as Read Mark All as Unread
The Fine Print: The following comments are owned by whoever posted them. We are not responsible for them in any way.
  • (Score: 3, Informative) by MostCynical on Monday April 16 2018, @12:02PM (3 children)

    by MostCynical (2589) on Monday April 16 2018, @12:02PM (#667590) Journal

    Profit-equitable-share companies, maybe?

    Worker collectives (again, profit share)?

    Otherwise, companies with 100% automated production.. not that there are any, yet.

    --
    "I guess once you start doubting, there's no end to it." -Batou, Ghost in the Shell: Stand Alone Complex
    Starting Score:    1  point
    Moderation   +1  
       Informative=1, Total=1
    Extra 'Informative' Modifier   0  
    Karma-Bonus Modifier   +1  

    Total Score:   3  
  • (Score: 2) by JoeMerchant on Monday April 16 2018, @01:48PM (2 children)

    by JoeMerchant (3937) on Monday April 16 2018, @01:48PM (#667621)

    Not-for-profits, yes... how many of those are publicly traded as investments?

    Worker collectives - a nice hybrid, I keep my money in a credit union and it does (mostly) serve its members, again operating with a not-for-profit charter. These kinds of organizations borrow a lot of structure from the for-profit companies they replace, but, again, aren't an investment for growth of capital.

    Companies with 100% automated production - I think you're missing my point here. If the company is for-profit, then the customers are the commodity. In a sense, Facebook is this already - virtual product, with the consumers as the value basis of the company. Same goes for restaurants, retail, leased real-estate, medical, etc. People are the value-basis of all these companies, without customers/consumers/patients the companies have no purpose and no profit.

    --
    🌻🌻 [google.com]
    • (Score: 2) by Osamabobama on Monday April 16 2018, @07:31PM (1 child)

      by Osamabobama (5842) on Monday April 16 2018, @07:31PM (#667764)

      So you are saying that companies make money from people? I'm not sure if you are trying to explain a business model, or define 'business model'. If all the business types you list fit into one category, that category doesn't do much to illuminate your point.

      Obviously, customers are the source of revenues. Maybe less obvious is that labor is the most significant source of value sold by a company. But I suppose it's people on both ends, so they are commodities. It's an interesting model; is it useful?

      --
      Appended to the end of comments you post. Max: 120 chars.
      • (Score: 2) by JoeMerchant on Monday April 16 2018, @07:45PM

        by JoeMerchant (3937) on Monday April 16 2018, @07:45PM (#667770)

        Invest in a company known for using humans as commodities!

        Is there any other type of company?

        So, from your observation:

        Obviously, customers are the source of revenues. Maybe less obvious is that labor is the most significant source of value sold by a company. But I suppose it's people on both ends, so they are commodities. It's an interesting model; is it useful?

        No. And, I would agree. The thing that somewhat separates Facebook from most others is that the human commodities neither realize that they are "working" for Facebook, nor directly pay Facebook for anything - so it's more of a 2B people-value in the middle, with thin slices on the paid labor and paying customer sides.

        --
        🌻🌻 [google.com]