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Originally Posted by $5 submissions
No I was referring to Instagram.
@TheSquealer you are right regarding your point that Facebook does make money. However, look into their filings and you'll see that their infrastructure cost per active user looks unsustainable. They are making $ now but it might not be sustainable and blowing $ on deals like Instagram makes their current strategy look like Yahoo's Pacman strategy back in the middle of the first Dot Com boom and bust cycle (1998 to 2001).
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I understand what you are getting at. I haven't looked at facebooks numbers.
I am very familiar with Yahoo and the fact that they are thoroughly inept in every sense of the word. The worlds second/third largest search engine had to turn over search to their competitor after denying they were a search engine at all. They turned over their bread and butter - PPC to their competitor. All of their purchases with the exception of flickr since their founding, I believe have been laughable and disastrous and 100% unrelated to anything Yahoo does (core competencies).
In fact, who the fuck even knows what Yahoo is? Whats Yahoo? The best search engine ever? A social media platform? Stock quotes? A product that tries to be everything in the minds of consumers is ultimately nothing in minds of consumers. This simple problem has always been their largest problem.
They are a mess and have always been a mess and have been losing money forever.
Anything that can be said about Yahoo and how they conduct their business and the ineptitude in which they've done so cannot be said about Facebook. The question you are posing couldn't even be answered in the next few years as only time will tell what moves were brilliant and which weren't. If nothing else, Facebook has almost nothing but wins behind them. No one has even came close to what they've achieved in their space and they are even threatening the worlds largest search engine without even trying to be a search engine.
They've made a large purchase of a business that gets them a 25 million user head start and is well within their core competency/business model. That cannot be said about anything Yahoo ever purchased. Yahoo has done nothing but act like a rich, drunk 20-something punk living on his daddies money... primarily coasting for almost a decade on the early success of search and PPC (they even license PPC patents to Google).