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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.
(Score: 1, Informative) by Anonymous Coward on Monday April 16 2018, @01:38PM
People weren't knowingly handing their information over to the NSA and the NSA doesn't specifically target people that are barely computer literate.
I think there's a lot of people out there that genuinely didn't understand what FB was doing and thought of it being a lot less harmful than it is. Now, having been caught with some egregious abuses of power that helped erode our political process all those people that had trusted the platform to just serve ads and provide a convenient place to communicate with friends and relatives are feeling hurt and betrayed.