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Why You Should Buy Facebook While It's in Crisis

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

realDonaldTrump writes:

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: 1) by khallow on Monday April 16 2018, @12:56PM

    by khallow (3766) Subscriber Badge on Monday April 16 2018, @12:56PM (#667604) Journal
    Exploitation isn't really that big a deal in the first place. I bought some red pens from Staples the other day. I exploited Staples by underpaying for those red pens and they exploited me by overcharging for the same. That's what any voluntary trade is about in the first place - mutual exploitation for mutual gain.