Facebook hits 1 billion users

More than 1 billion people, 1 in every 7 people on the planet, now log in to Facebook every month. And that’s almost half the estimated 2.5 billion internet users, as measured by the International Telecommunications Union.

It took Facebook just two years to double the number of users from the 500 million it hit in July 2010, and most of those users are outside the United States. It’s an amazing achievement when you consider that the Facebook has almost zero users in China, the world’s most populous country. China blocks access to Facebook from within the country.

The problem for Facebook and its shareholders is how to make money from all those users. A vast majority of its current revenues comes from advertising, while the rest comes from payments when users buy virtual goods on Facebook games – Facebook takes a cut of the payment. Advertisers are attracted by the massive audience they can reach, plus the ability to target ads with relevance based on information users share with Facebook and Facebook applications.

The company has also recently started charging users to promote posts to their friends, and it has been suggested that advertisers could soon start offering movies and shopping on Facebook – for which the company would of course take a cut. Shareholders will certainly be hoping Facebook can make more money from its users in the future. Since the company listed at US$38 a share in May 2012, shares have fallen by 38% to US$21.95.

If you are looking for ASX investing ideas, look no further than our brand new free report: The Motley Fool’s Top Stock for 2012-13. In this free report, Investment Analyst Scott Phillips names his top pick for 2012-13…and beyond. Click here now to find out the name of this small but growing software company with huge potential. But hurry – the report is free for only a limited period of time.

More reading

Motley Fool writer/analyst Mike King doesn’t own shares in any stocks mentioned. The Motley Fool’s purpose is to help the world invest, better. Take Stock is The Motley Fool’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Click here now to request your free subscription, whilst it’s still available. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!