Despite market fluctuations, pundits and haters - there is an objective truth that Facebook's financial performance is exceptional.
Facebook full year 2011 EBITDA was roughly 55%, demolishing google's 37% and apple's 42%. Wilson approximates a 40% margin in Q1, but ad businesses tend to be Q4 heavy due to holiday shopping. Facebook has demonstrated exceptional leverage in its model.
Facebook has growing pains for sure, but that is likely a result of being the first to scale in its market.
Who knows what the market will do, the general sentiment here and in other places seems to be largely emotional and indicate that it will go down further. But even if you strip away Facebook's brand name and sexy market, the numbers are impressive and the business performs very very well.
The problem isn't that Facebook doesn't have earnings, but rather their incredible P/E ratio.
Also, the profit margin doesn't say much about a company that doesn't do much other than its core product, while Google and Apple have their hands in other products as well. If anything the chances for long-term survival look better for companies that diversify successfully and Facebook hasn't demonstrated an ability for that.
Facebook full year 2011 EBITDA was roughly 55%, demolishing google's 37% and apple's 42%. Wilson approximates a 40% margin in Q1, but ad businesses tend to be Q4 heavy due to holiday shopping. Facebook has demonstrated exceptional leverage in its model.
Facebook has growing pains for sure, but that is likely a result of being the first to scale in its market.
Who knows what the market will do, the general sentiment here and in other places seems to be largely emotional and indicate that it will go down further. But even if you strip away Facebook's brand name and sexy market, the numbers are impressive and the business performs very very well.