Is Facebook Profitable?

[Ahsen]

Hi,

I’m new in this forum and this is my first post.

While surfing I came across a discussion where some say Facebook is not profitable yet. How this can happen? According to them it sells stock to cover expenses. What do you think? Any idea?

[straightarm]

Virtually every internet start up burns cash at a frightening rate and very few go on to be profitable.

I heard a rather cynical view of interweb businesses that the only profitable ones are pornography and fraud!

If you look at Facebook, what is its income? As it's free, it's not from users. It's mostly selling US adverts, however it has in excess of 200m users, which means it needs a lot of resources to keep it running, and those resources are expensive.