Newspapers, television, and websites don't either, based on your definition. Perhaps you need to get your head out of your #$%$ and maybe you can see that ADVERTISING time and space is a product.
translation to this post:
Help me, I am stupid, I shorted FB and now am scared I lose my home and wife if it goes to 100. Please get scared and sell your shares so the price can drop to 55 and I can cover... please God help me?
My advice to you is cover as soon as this market thing is over, or...... cover at 100 then go buy a tent to replace your home and a tube of lube to replace the wife :)
Well, I can see here that nobody's done the research. FB ads may have high click-thru rates out of the gate, but the conversion rates to actual customers and transactions is nearly zero. And many of the initial click-throughs come from weird, random places like asia and eastern europe. That strikes a lot of people as somehow not quite right. So, before you go all crazy citing FB as the greatest ad agency on the planet, ask around your immediate circle of friends and associates: how many of them have actually placed FB ads, and exactly how much business did it bring them? The answers might surprise you.
Oh, wait, I forgot: nobody here wants to do any actual digging. They all just want to sit around and sling opinions from the hip.
That is almost correct. FB is selling advertising space to the masses. Many users that opens their FB pages sees it. That is what Zuckerberg is selling to these product companies. These companies wants the users to see their product and Zuck is making them pay big dollars to have that exposure.
Look at all the online and brick/mortar companies this season that advertise and jockeying for ad space, paying FB top dollars for this exposure. It is great that FB is not selling any physical product. Inventory holding cost is expensive. I am glad that FB do not have this expense amount.
They are making too much money to file for Bankruptcy. Take a look at their earnings report. The money is just piling up and they are using the money for more acquisition like Instagram and spending more resources for mobile apps.
You probably are a bit #$%$ off for not getting into the action sooner. FB will hit triple digit in value soon. It is still not late to get in on it. Even at this price you maybe able to double your investment by the end of 2014. Get in now before it will get more expensive. Im long since mid last year and i have more than double by money... Long baby Long...... Go FB...Go Zuck