Monday 20 December 2010

Facebook Revenue Is Not Growing Like Google's Did

Facebook Revenue Is Not Growing Like Google's Did 

Facebook is on track to generate $2 billion in sales this year, a nice milestone for the social networking king.

In part because of this news, investors are piling into Facebook stock on the private markets at a $56 billion valuation. The assumption is that Facebook is the next Google, a money printing machine that might eventually even be BIGGER than Google.

While it's possible that scenario will play out, it's worth looking at how Facebook's revenue growth compares to other online-advertising-driven companies, such as Google and Yahoo.

It's true that Facebook did not emphasize revenue early in its early years, but neither did Google.

And as you can see above, when Google did put the pedal down, its revenue grew much more rapidly than Facebook's.

So those who are counting on Facebook becoming a bigger business than Google had better hope it has another ace up its sleeve.

Read More »

No comments:

Post a Comment