Facebook loses over $20 billion
Facebook shares continue to fall as nervous investors question Facebook's ability to translate a billion user profiles into actual revenue.
The question is how to generate sufficient revenue to justify the astronomical market cap. Ad space alone won't do it, even with close to 1 billion users. GM recently pulled $10 million in advertising from Facebook. Presumably the ads weren't generating sufficient return.
The real gold is the amount of personal data that Facebook has. But, how they can use it is the question. Privacy has been a major concern for Facebook users and they likely will not take kindly to any sudden moves to sell personal information to marketers.
Facebook has a tough road ahead.
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