Trading
Hate To Be Rude, But Facebook Is Not The Next Google. It’s Not Even Close (GOOG)
Information about Facebook’s 2011 revenues and operating profits leaked last week, just ahead of this week’s expected IPO filing.
If CNBC’s reporting is accurate, the numbers are disappointing for a company that’s supposed to be valued at $75 billion to $100 billion when its shares start trading.
Revenues came in at $3.8 billion, less than an expected $4+ billion. Operating profits were $1.5 billion, less than an expected $2 billion.
Facebook’s results look particularly disappointing in comparison to Google’s first seven years of business. We’ve drawn out that comparison below.
The comparison is actually worse than it looks. Remember, Google was born at time when Internet usage, and online ad spending, wasn’t even half of what it is today.
The fact is, Facebook is a huge consumer hit – 850 million people us the site each month – but it’s ad products are not, really.
Google’s ad products are business magic. Consumers see ads for products that they literally want to see.
So far, Facebook hasn’t found that kind of magic. Investors looking at Facebook’s S1 filing this week will have to wonder if it ever will.
Please follow SAI on Twitter and Facebook.
Join the conversation about this story »
See Also:
Will Google’s Market Cap Pass Microsoft’s This Year? (GOOG, MSFT)
Two years ago Apple pulled off an impressive feat: Its market cap surged past Microsoft to become the most valuable company in the tech industry.
Then last year, IBM managed to slip past Microsoft to be more valuable. It’s since fallen back and Microsoft is more valuable.
Who will it be this year? Well, it could be Google. The search company is just $19 billion behind Microsoft. All it would take is Google’s stock going on a tear, and Microsoft’s fading or sitting still.
When (or if) it happens, you know Microsoft CEO Steve Ballmer is going to freak out. Don’t forget, he’s the guy who threw a chair and had a tantrum when Google poached one of his employees.
Please follow SAI on Twitter and Facebook.
Join the conversation about this story »
See Also:
- The First Trading Day Of 2012 Was Great For Tech Stocks
- New Year’s Resolutions We’d Like To See Big Tech Companies Make For 2012
- THE MICROSOFT INVESTOR: Supply Chain Working On Wintel Tablets For Second Half Of 2012
—
drag2share – drag and drop RSS news items on your email contacts to share (click SEE DEMO)
Digital Consigliere
Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.
http://twitter.com/acfou
Send Tips: tips@go-digital.net
Digital Strategy Consulting
Dr. Augustine Fou LinkedIn Bio
Digital Marketing Slideshares
The Grand Unified Theory of Marketing
Tags
Popular Posts
- Netflix vs Blockbuster - Perfect example of an industry replaced by a more efficient version of itself
- Coke vs Pepsi vs Dr Pepper
- Marketing Costs Normalized to CPM Basis for Comparison
- 3G calling, no registration, and totally free
- The Top Endorsement Earners In Each Sport
- AOL's Plan To Steal TV Ad Dollars Is Totally Working
- drag2share: The Most Pinned Brand On Pinterest Doesn't Even Use A Pinterest Account [THE BRIEF]
- Groupon launches Breadcrumb iPad app, vows to not be a typical POS
- HP Mini 311 Nvidia ION Netbook Hackintosh'ed
Published Articles by Dr. Augustine Fou
- #SESNY: Toward a Performance Mindset for All Advertising
- Tips for Marketers Selecting a Digital Agency
- Context Is Not King or Queen; It's Just Necessary
- 2013 New Year's Digital Marketing Resolutions
- The Good, Bad, and Ugly of Online Campaign Ratings and eGRPs
- Why You Should Banish the Net Promoter Score Immediately
- Digital Strategy To-MAY-to vs. To-MAH-to
- The Agency-Client Relationship is Forever Changed
- Targeting vs. Privacy - Who Will Win?
- Digital + Traditional = Unified Marketing
Pages
Archives
- May 2013 (63)
- April 2013 (70)
- March 2013 (114)
- February 2013 (89)
- January 2013 (136)
- December 2012 (96)
- November 2012 (130)
- October 2012 (147)
- September 2012 (94)
- August 2012 (92)
- July 2012 (112)
- June 2012 (71)
- May 2012 (82)
- April 2012 (80)
- March 2012 (122)
- February 2012 (114)
- January 2012 (129)
- December 2011 (60)
- November 2011 (54)
- October 2011 (29)
- September 2011 (17)
- August 2011 (30)
- July 2011 (18)
- June 2011 (19)
- May 2011 (23)
- April 2011 (23)
- March 2011 (52)
- February 2011 (69)
- January 2011 (108)
- December 2010 (82)
- November 2010 (67)
- October 2010 (68)
- September 2010 (44)
- August 2010 (101)
- July 2010 (61)
- June 2010 (28)
- May 2010 (28)
- April 2010 (26)
- March 2010 (33)
- February 2010 (21)
- January 2010 (12)
- December 2009 (4)
- November 2009 (2)
- October 2009 (14)
- September 2009 (6)
- August 2009 (19)
- July 2009 (34)
- June 2009 (11)
- May 2009 (4)
- April 2009 (6)
- March 2009 (13)
- February 2009 (32)
- January 2009 (25)
- December 2008 (1)
- October 2008 (1)
- June 2008 (1)
- November 2007 (1)
Prototype Web Services
- drag2share – quickly share news items by drag and drop on email addresses
- LivePhotoFrame – upload and remotely manage a digital photo frame via unique URL
- MedleyTuner – create a continuous listening experience by uploading mp3s
- MusicSamplr – discover new artists and music, listen to samples
- SharedMost – what links on ANY webpage are shared most?
- Signatory – sign and date a document and verify it hasn't been altered since that exact time.
- WebTeleprompter – just what it says it is
