

Ken Rutkowski  (Source:











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RE: This guy is a moron
By Azethoth on 4/15/2011 5:21:33 AM , Rating: 2
For arguments sake, lets imagine you read and comprehended the article. This would lead you to know that Facebook has 600 million active users. Whats an active user? Well you could Google it or just know that for social applications it tends to be unique active users in a one month interval. They also tweek this number over time to cut out frivolous counts. So for instance liking and disliking things while in another app does not count. You need to actually be in Facebook itself.

So for World of Warcraft its over 12 million, and for Facebook, the big daddy of social networks, its over 600 million and still growing.

Bank of America: $2,268,347,377 in assets, $683 billion in deposits (quick and dirty googling). So Facebook is not going to exceed their assets in like a gazillion years. Deposits though is another matter. From your calcs it would take 10 years. Less as their user base is still growing. More googling yields a penetration rate of 30% of a given population (developed). So eventually (assuming no killer app on their platform) we are looking at 2-3 billion users.

Meanwhile, 1 year of $60 billion puts them in the top 20 US banks though. 2 years top 10, 5 years to get into the top 5.

So the analyst is roughly right but not necessarily about the time-scale. On the other hand, Facebook getting better at making money works in his favor. BoA is severely limited in how much they can grow in comparison.

