Friday, 27 April 2018

Facebook profits - $2.27 per active user

From The Independent:

Facebook profits soared 63 per cent to $5bn (£3.6bn) in the first three months of the year despite the company being engulfed in a data privacy scandal that has angered millions of users.

from Statista:

As of the fourth quarter of 2017, Facebook had 2.2 billion monthly active users.


Shiney said...

Your point?

Mark Wadsworth said...

Sh, no particular point apart from the obvious one that the profits per user are ridiculously low. The key is to have lots of users.

Lola said...

MW Rather like the way Las Vegas works. It's the billions of small bets that make the Casinos rich, not the small number of high rollers (and the games are rigged - of course).

Lola said...

..and thinking about it a bit more that's also how insurance companies work - a bit.

Mark Wadsworth said...

L, I'm not sure that the casino and insurance company (see also bookmakers) analogy applies. They have lots of small wins and a few big losses, they have to judge premiums/odds to make sure that overall they come out ahead. i wouldn't call it 'rigged', that;s just their risk premium, so fair enough.

FB just has billions of small wins, I doubt there are any users who causes them big losses.