Facebook's Next Moneymaker

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.

Chris Hill owns no shares of any of the companies mentioned. The Motley Fool owns shares of Facebook, Baidu, and LinkedIn. Motley Fool newsletter services have recommended buying shares of LinkedIn and Baidu. The Motley Fool has a disclosure policy. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


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  • Report this Comment On June 14, 2012, at 11:01 PM, jacobandersen72 wrote:

    I hope the FTC/SEC blocks Facebook from buying one of its strongest competitors -- Instagram. Instagram is a photo based social network that now has 50,000,000 users. its one of the strongest competitors facebook has seen to date. Facebook has network effects. Without network effects Mark and Co. would have had strong competition a long time ago. Instagram is one of the few companies that found a hole in Facebook's armour through its early jump on mobile platforms. It would be a shame to simply watch Facebook buy away the competition. Do the right thing FTC/SEC and block the buyout. Make Facebook compete.

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