By The Numbers: Should You Buy Facebook Stock? Facebook Facebook forex model Match Group In The Online Dating Space – What Now?
This article is now exclusive for PRO subscribers. SummaryFB reports quarterly earnings after hours. It business model could gain further scrutiny after news surfaced that third parties had access to FB user data. Howls for regulation could be painful. Revenue and earnings could be negatively impacted due to tweaks to its business model. Update To Facebook’s Business Model Facebook dominated the news cycle over the past several weeks.
News surfaced that Cambridge Analytica, a U. Facebook user data to target specific voters and demographics during the 2016 presidential election. The rub is that in Facebook’s business model users are the product. If Facebook can make money from selling user data then it almost has a fiduciary responsibility to do so. Facebook’s ability to mine user data or sell that data so others can mine it is fundamental to its business model.
Investors now need to know if that model will change and how it will impact earnings. The chance to reach that many users in one fell swoop offers advertisers efficiencies that could be difficult to get elsewhere. MAU and MAU growth have been the main metrics advertisers have relied on in choosing Facebook as their ad platform. There are two key questions surrounding MAUs.
First of all, how many of those accounts are real? Facebook has intimated it will clean up its fake accounts prior to the mid-term elections in the U. The company appears to be heading off potential negative publicity over its role in future elections. Previous reports suggested 2 percent to 3 percent of its accounts were fake, and over 6 percent were duplicates. However, more and more news is being disseminated over their platforms.