Anatoliy Telis

Tech, healthcare, biotech, internet
Anatoliy Telis
Tech, healthcare, biotech, internet
Contributor since: 2012
Facebook is still growing pretty nicely, I am talking to my friend in the industry and everybody tells me that FB mobile ads are doing very well, so as a company they are doing pretty well and they have number of new products coming soon which will just increase their profits!
ok lets reconnect after their next earnings!
Facebook just delivered pretty good earnings if you ask me...
Yes I agree at this point they have the money and capabilities to do anything they want... So the only question is can they execute in accordance with their plan!
Microsoft has about 50 billion net cash
Google has about 33 billion net cash
In this case I think its not about cash, it is all about innovation!
Microsoft is very good at milking their existing "windows" cash cow, however if you look at their online bizs you will see that they are doing not so well!
I have no idea about day to day stock price movement, the point of my article is to show long term value of the specific market which Facebook will be entering...
No I still like the growth potential of other Google products such as YouTube which I believe will continue to take away video ad market share from traditional TV...
lot2 Facebook has previously mentioned that over a billion number excludes fake, etc.. profiles so I believe the number is more or less accurate...
Now about the internet connection, soon everybody will have internet since every phone will be smartphone with an internet connection, as such Facebook mobile will be available to the whole world!
China & India are 2 huge markets which Facebook didnt really yet touch, especially China which is still "closed" market due to their national regulations.
The biggest difference between MySpace & Facebook is the fact that MySpace was a destination site, and Facebook is a platform which is used by millions of sites, apps, etc.. so at this point Facebook is just an important component of the internet ecosystem! Now things do change and anything can happen but at this point Facebook is a very important part of the internet...
lot2 while Google in fact has lots of different products, I believe majority of their revenue is still coming from their "Search" product! Social media itself might be not that profitable however the data which Facebook acquires as a result of interactions of its users is extremely valuable and can be used in almost any kind of businesses! For example based on your social activity Facebook can decide if Financial Company should offer you a loan and if yes what kind of rate you can get, etc... The point is Facebook has world biggest database of users and data which in turn can be used for many new bizs with "search" being one of them...
Microsoft is really not a good example since as a company they just suck at execution... In the case of Faecbook they are still a young company and "search" is just one of many areas they are working on, so yes it will take time but it is coming...
Yes lots of early Facebook employees are now millionaires so it will be hard to keep all of them, however Facebook is a profitable company, they have lots of cash in the bank and are still considered cool company to work for, as such I am confident that they will be able to hire the right talent...
"when they can come up with a search engine that will even rival Yahoo." remember in the early days of Google people said Google will never be better compared to Yahoo and Altavista, so yes things do change and technology industry is a very fast moving industry! The only reason I am really confident in Facebook is because they have so much user data which will help them create more targeted products!
again Facebook search engine is "not yet" ready so the search results you might begetting now are not the same search results you will see in the future!
User 185739 that is absolutely correct Facebook will have many more new ad products beyond search, I just decided to concentrate on "search" part because it is an existing and very lucrative market!
GeneralMidi please keep in mind that Fcebook search engine is not yet ready but it is coming!
waajid21 based on my discussion with many people in the tech industry the common belief is that Facebook will in fact take away some market-share from google once Facebook search engine is ready!
trutestofwill in regards to your comment "Facebook does not have the right kind of talent to produce a Google grade search, nor do they have the indexing server infrastructure in place." Facebook has lots of cash and they still have lots of smart people working for them so talent is really not an issue in their case!
JoeMarfice while you may disagree I do think that Facebook has one huge asset and that is its 1+ billion of users and growing... With such huge user-base Facebook can do lots of interesting things and generate lots of additional revenue if they desire to do so...
lot2 in regards to your comment "They produce and make nothing. Absolutely nothing!" until Google acquisition of Motorola they also didnt produce anything but their stock price was pretty good, in our days data is the king and Facebook has lots of data to enter many digital businesses!
Silver Surfer you can compare Google and Facebook purely based on PE since Faecebook is a much younger company and they are quickly introducing many new ad products unlike Google!
E. Lief i agree with your comment "developing and proving out these businesses, including search, will take time."
heliskiier in regards to your comment "The searches are for people....not for anything that can generate cash.." While majority of searches might be for people they still do generate searches for products and services and that is without even having a normal search engine in place!