Facebook has released its numbers, and if you are a Facebook hater or skeptic, you might want to sit down while you read this. You might also want to whip out a box of tissues and stop thinking about the Facebook stock that you did not buy. If it makes you feel any better, we are in the same boat. It has been our position all along that Facebook stock was not a good buy not at 30, not at 20 and definitely not at 40. Facebook’s stock has been exploding, and thanks to the recent figures released by Facebook, it is not hard to see why. Facebook figures reveal that it has nearly a billion users not on its web presence, not on its website, not on its web-based platform but on mobile. Think about that. Let it sink in. This is huge news. If Facebook is able to get nearly a billion mobile users, the sky is the limit for this social networking platform. Mobile is growing fast. It’s huge. In fact, it has really left traditional computing and the traditional ways of viewing Internet content in the dust. Mobile is the future. To make matters even worst for critics of Facebook, the majority of Facebook’s revenue comes from mobile.
Well, is it time for us to join the bandwagon? At this point in time, it really doesn’t matter. A lot of our misgivings regarding Facebook have really vaporized. We were skeptical of Facebook because we thought that its software could not be portable and could not be cost-efficiently distributed across a hardware network. We were wrong. How did Facebook fix this? It used all sorts of ingenious open source and software-based approaches to really get its software footprint down and distribute its processing firepower across a massive network. In other words, it pulled the You Tube on us. Number two, we were skeptical of the fact that Facebook’s revenues don’t really come from mobile. That its revenues were based on models that were pioneered on desktops and laptop’s screen. Wrong again, Facebook stepped its game up on mobile advertising and now its reaping the benefits of those changes. Moreover, Facebook has simplified its mobile presence, and it doesn’t stop there. The company just announced that it will be launching an initiative called Paper which will simplify its mobile footprint even more.
We were completely wrong about Facebook. Sorry Mark Zuckerberg. I know you’ve been losing sleep because this blog has been criticizing your business model. You can sleep tighter now and rest assured that you are a super genius.