Hexbyte Tech News Wired Why Facebook’s Thinning Profit Margins Are a Secret Asset

Hexbyte Tech News Wired

Mark Zuckerberg & company surprised investors on two fronts last month, pushing Facebook shares down 20 percent and wiping out about $130 billion in market value. One was predictable, the other less so.

First, Facebook user growth is slowing, and the problem is unfixable: The company is quite literally running out of humans on the internet. At around 2.2 billion users at last count, there are nearly twice as many Facebook users as Catholics. Given that there are only about 3.5 billion humans on the internet, and many of those are behind the Chinese protectionist wall, Facebook has to either generate more humans (Facebook Dating!) or increase internet access (something it’s attempting via various means). This should come as no surprise to anyone who closely follows the company—I predicted as much in my memoir of working there, Chaos Monkeys—so only the un-smart money could have been spooked. But the reality does alter the company’s financial footing.

Read More