Standing between fortune and chaos (KAL / May 17, 2012) |
Kevin Kallaugher's depiction of new investors in Facebook essentially as being sheep waiting to be sheared ("Standing between Fortune and Chaos," May 20) was right on the mark. Despite a reported 900 million participants in Facebook, but with only $5 in revenue for each participant, the price-to-revenue ratio, not to earnings, was an astronomical 20-to-1, and this before the expenses and taxes are considered.
With a number of companies pulling out from advertising on Facebook, the inability of founder Mark Zuckerberg to generate a greater yield per user and competitive companies starting to cut into the user base, the original founders of Facebook made a killing at the expense of those who came too late to the action.
Nelson Marans, Silver Spring
