Facebook Constantly Receives Investing News Headlines
It is one thing to create a website that allows a group of college students to interact with each other. It is an entirely different thing when that network goes global. Mark Zuckerberg knew a good thing when he developed it. His networking site Facebook quickly took the world by storm.
It allowed people from across the globe to connect and be part of a growing social network. It allowed people to find friends and share stories about their daily lives. It is also about money. Investing news stories are continuously being published about this networking giant.
Investing news stories are always making the headlines. The Facebook empire made its first headlines when Peter Thiel, co-founder of PayPal, invested $500,000 into the fledgling enterprise. Would this be the starting point for a top 10 business? Many business experts conjectured that Facebook would join forces with a larger company to help back its financial needs. They were a bit mistaken.
Facebook makes its money, which allows it to remain a free website, through the use of advertising services. Each time a person clicks on one of the banner ads and makes a purchase, the company receives a portion of the profits. But there is a problem with that. With revenue dependent upon you clicking a banner ad, it can begin to suffer if people do not buy through their advertising services. This is most likely why Facebook had a $3.63 million dollar net loss in 2005. It was spending more to host the website and provide services than it was bringing in. Read more