Whenever I bring up Facebook with friends, the conversation quickly moves away from whether it’s a great business to one of the following:
Ethical issues
Privacy concerns
Whether Mark Zuckerberg is a robot (FACT CHECK: he is)
While there is truth to all these observations, they miss the point: Facebook has one of the most dominant business models on the planet.
That’s why it didn’t surprise me to see the world’s largest social media platform hit $1 trillion in market capitalization faster than any company in history:
While this week’s surge in Facebook’s shares came after a judge threw out a Federal Trade Commission complaint alleging the company is a monopoly…
…Facebook is a $1 trillion company because it generates massive profits due to something called a “network effect.”
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