Just bought 300.00 in Gifts for Xmas. (What don't people get about this?) BILLIONS
Why would I get into my car, drive down to Starbucks, buy gift cards that are plastic, drive home, put it in an envelope, buy a stamp, walk out to the mailbox and send it? I can send it in 2 mins with a card on FACEBOOK! 500 Million people buying 4 Starbucks cards a year for their friends and family is 10 BILLION per year, which means Facebook will make 1.5 to 2 Billion per year at ZERO COST TO THEM!!!
You are an exception to the rule. I bought most of my gifts from Amazon and Ebay which is easy and there are a millions of different selections.
Most people do get this and that is that there are less than 500m people in the developed world who use Facebook. A very few people on a percentage basis will buy anything no matter what the platform is. 500 million is way more than will every use this service.
Starbucks wont pay 20% to FB to sell a gift card. No way .....never!
There is a cost for every program and if you think marketing to these companies is nothing well you don't know about the cost structure of marketing plus there are many ancillary costs also.
10 billion in revenue does not make FB anywhere near a $100 stock.
If you want to say that the gift option is nice and it will provide a decent incremental income, well that is okay. To believe gifts will be this giant income source and is a panacea for the share price, will cause me to disagree with you.