Facebook's unintentional success pretty much speaks for itself. Founder Mark Zuckerberg stated unequivocally in February 2012 when the social network set out its plan to go public that he had embarked on a social mission from his Harvard dorm room, not to create a company. That probably explains his understated response to the impressive second-quarter results. Some $190 billion of market value later, though, it's clear Facebook's significance lies squarely in the commercial realm.
"We had a good quarter," was the laconic quote from Zuckerberg that accompanied the latest results on Wednesday. Active users grew to equal the size of China's population and Facebook is wringing ever more advertising dollars from each of them. Revenue grew 61 per cent from a year ago, to $2.9 billion. And even though the company is spending more, its operating margin is steadily rising. It reached an enviable 48 per cent in the quarter. Earnings more than doubled. Hefty investment in Instagram, WhatsApp, video advertising and other services should set the stage for further lucre.
While Facebook's prosperity is unquestionable, its services are also being used more and more on a practically begrudging basis. Complaints about algorithms that suppress status updates, enlisting users unwittingly to be guinea pigs in a social experiment, and the growing number and poor quality of ads fill the namesake site. Privacy matters remain an ongoing concern as do demographic questions.
Zuckerberg's goal of changing how people relate to each other, government and social institutions, as he put it in his letter in the initial public offering documents, seems increasingly out of reach. He can shrug off the capitalist success all he likes, but it may turn out to be his crowning if accidental achievement.
