Because you can always live in a house.
Which is something you can't do with Facebook.
Neither can you eat it (which you could do with tulip bulbs, worst case scenario).
Facebook - you can't live in it, you can't eat it, you can't wear it, you can't drive it to work.
It is fun, however.
And very popular.
But is popularity a business? Or is it another housing bubble?
Facebook has 900 million users. Very impressive.
In 2011 it showed $3.8 billion in revenue and $1.5 billion in profit.
Very reasonable, until you divide them into one another.
Then, not so impressive.
Facebook generates an average of $4.22 from each of its users per year. Or just over 1 cent per day per user.
But wait, it's worse.
We spend cumulatively 700 billion hours per month on Facebook.
Talk about time wasted.
Facebooks gross revenue is $316 million per month.
or.... ready? $.0004 per person per hour.
Or... 4/1000th of a dollar per person per hour.
is that even a number?
That's what Facebook, for its valuation of $100 billion is able to generate from each of us.
As a business, it makes housing estates in Ireland look good.