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by im2nguyen
3425 days ago
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I feel like you should have read further into the article, where the author attempts to back their claim, instead of jumping to conclusions. "
>Roughly $2.50 to acquire and monetize a new user (and getting more expensive fast with v low and slowing growth)
>Each user generates $3 in ad revenue per year
>Each user costs them $3.25 in Google data center costs per year to store their pictures (so negative gross margin still at 150M users)
>Plus another $1+ per user a year in R&D costs
>Plus another $1+ per user a year in G&A costs Today the more users they get, the more money they lose. If they can double revenue per user, they are making profits. They need to more than quadruple the revenue per user to have the future profit stream to add up to $25B." |
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