What do you mean " need "? You don't need to live in a house , cave is good enough to live . But house make you feel more comfortable , FB save you money to communicate you friends and family , FaceTime make that even better , you can see them, and free !! You can express your motions through it , Say something you want to say.and meet new friends , it's again free ! And because more then 1 billion of users , now they can do lots other service , like shopping on FB GIFT and much more. I am a believer , they going to change the world and make it better , of course , they will find the way(s) to reward themself and investors, they deserve it , and we deserve it !!!
Simply a great question - need? No. However, some mega-FaceBook users I know seem to have self-esteem or other personal issues, coupled with an inordinate amount of free time to waste.
I would think that might make them very good consumers and thus beneficial to FB, except, generally they don't have much disposable income due to spending all day playing free games on Facebook.
What is interesting is that, in order for FB to succeed financially, they essentially have to become something they were/are not. For example, they have to out-Google Google or out-Amazon Amazon. The mid-term question becomes whether or not those efforts are successful and whether or not they alienate users in the process.
One of my main FB concerns is that a number of people I talk to have become very guarded about their FB postings. I hear things like, "I haven't been on there in months" or "I need to go delete my profile". Others are now posting mostly "sanitized" versions of their life just to save time keeping up with distant relatives or aquaintences that they otherwise don't have time/inclination to call. I think there is a purpose/value to FaceBook, but I think people are aware/becoming aware of the privacy trade-offs as well.
It kind of makes me thing the next move is lower here after a 50%+ run up. But, perhaps there's a few more shorts to roast...could go either way short-term.