I dont fully understand that article. How can Facebook use that information to create advertising on other sites if their users arent currently logged in to facebook. On facebook they can use the info from the users input to target ads. But the article says that they will eventually use their info to have targeted ads on other sites and I dont believe that is likely without creating huge legal and privacy issues (much bigger than their current privacy issues). Also, google is able to put together an immense amount of info about their users based off of searches and web sites visited thru google.
Happens all the time, every day. That's what SEO is. Cookies, my friend, cookies.
One huge advantage that google has with its adsense is that when people are using google they are often looking for products and things. Advertising works because it gives them what they are looking for. However, when people are on facebook or other similar sites they have less interest in the ads, the ads just get in the way of their "socializing." Google and its purpose is just inherently built for advertising to work in a way that no other model ever has.
I hear why you think that facebook has a strong future and I dont disagree with that, but there is no way that google fears facebook. Now if google was able to find a way for google+ to really take off then facebook would have what to be afraid of (I doubt this will happen).
Google+ is all but damned, try though as Google does. It has a couple of slick features, but until it reaches critical mass, it won't be able to touch Facebook.
I'm not saying I'm jumping into a Facebook investment with both feet, but Facebook is an advertisers dream. And, as they say, the proof is in the pudding. Look at the numbers.
Throughout my schooling every professor I had kept on warning us not to buy into a company just because it is the hot thing. If the company can't put forth a concrete plan for future growth then you can bet the stock won't perform nicely. To be frank I have a lot more trust in a company like google where the list of its products and developments are forever expanding. Mr Zuckerberg built himself a nice company but I don't see it to be dynamic at all.
More new users=more money in future advertising? Ok fair enough but how many more users are there going to be in the next 10-20 years? This is without the assumption that Facebook could easily be a thing of the past in 5 years time. As a long term investment I'd be wary.
You're professor was right. But, who is saying you should invest in Facebook because it's "the hot thing?"
Riddle me this: Do you think the company would be valued at just near $100
billion dollars because they do
not have a plan for future growth?
Poll