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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, Troll) by All Your Lawn Are Belong To Us on Tuesday April 17 2018, @07:15PM
Nitpicker above aside, which has a point but misses yours utterly....
A tiny dedicated minority can easily change an outcome when it is in the outcome maker's interest to do so. Kosher certification of a product.... if it can justify more in sales than it costs to obtain the certification, that's sound business sense. A minority is getting something because it costs them less to do so (or profits them more.) A company might do so anyway, but there is usually a motivation (or you'd see a lot more kosher-certifications than you currently do).
The only way Facebook will be persuaded is by legislation or taking pre-emptive measures to forestall legislation that would hurt their pocketbook more than the costs of non-compliance. If Facebook weren't afraid of more draconian regulation they most likely would have shrugged this off with lip service. They still may, if Zuckerberg did his job correctly with Congress.... looks like he's in a prime position to execute some regulatory capture.
This sig for rent.