Facebook Doubles Revenue – An Intern’s Perspective

Facebook continues to prove that it’s not going anywhere, at least anytime soon. The company reportedly doubled its revenue in the first half of 2011 to an astonishing $1.6 billion, leaving investors impressed – to say the least. Despite increasing rivalry from its competitors, most recently Google+, Facebook continues to leave a mark on the social networking world.

Facebook’s ability to incessantly entertain its 750 million users is due in large part to its frequent website updates. Facebook is expected to reveal new features later this month, which will allow users to stream and share music with friends. At such a steady rate of progression, it seems that Facebook’s capabilities will soon be limitless.

Founder and CEO Mark Zuckerberg is confident that Facebook messaging will soon replace standard e-mail, even in the office. “Humans are hard-wired to be interested in people,” Zuckerberg said. “I think that over the next five years, most industries will get rethought to be designed around social. It’ll be a revolution.” While that might seem to be a bold claim for a 27-year-old, Facebook’s unparalleled success makes doubting the company almost comical.

Mobile access has recently caused Facebook usage to further skyrocket. Users are becoming increasingly engaged in the site and relying more heavily on Facebook as a main method of communication. Just six years ago, only 5% of Americans took part in social networking. Today, over 50% of Americans use Facebook alone.

Facebook is planning to go public by May 2012, with its IPO expected to top $100 billion. That IPO will be one of the largest that the world has ever seen. Mark Zuckerberg is not thrilled about this private to public shift, as he had high hopes of maintaining full control over Facebook. However, the 1934 Securities and Exchange Act states that once a private company has more than 500 investors, it is required to release its quarterly financial reports to the public. Another motivator for Facebook to go public stems from the desire to increase employee compensation. Previously, employees were prohibited from selling their company shares to other investors. However, once Facebook is officially deemed a publicly-traded company, employees will be able to sell their stock as they please.

It is clear that Facebook’s success remains on the rise. The company’s impressive performance has shed a new light on the world of social networking. The site has become a part of everyday life for hundreds of millions of people across the world, and it is now without a doubt that Facebook is here to stay.