The following video is from last week's MarketFoolery podcast, in which host Chris Hill, along with Tim Hanson and Joe Magyer, discussed the latest business news. The media constantly refers to Facebook as having 900 million members, but is it really that high? In this segment, the guys analyze how companies such as Facebook, Zynga and LinkedIn count their members and differentiate them from customers paying them a fee. They also discuss key metrics that investors should focus on, like average revenue per user, as well as how companies such as Facebook and Baidu wrestle with the challenge of hyper-targeting its users.
Despite being the largest company to IPO, Facebook still has the challenge of creating new ways to make money off the hundreds of millions of people who populate the site. We've created a new report, "Forget Facebook -- Here's the Tech IPO You Should Be Buying," which details a much better social-media stock that has a longer runway for growth than Facebook. The report won't be available forever, so click here to get access today -- it's totally free.
