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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: 2) by archfeld on Monday April 16 2018, @09:36PM

    by archfeld (4650) <treboreel@live.com> on Monday April 16 2018, @09:36PM (#667810) Journal

    It doesn't matter whether people are leaving because of privacy issues or not. When your grandma is on the same social networking site as you it becomes de facto uncool. The next generation will choose something else just to rebel from their parents social world, the same way they will evolve new slang so that no one else will be able to understand them in casual conversation.

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