Social media sites finally heading for profits

Zuckerberg says Facebook is cashflow positive

Zuckerberg says Facebook is cashflow positive

Facebook owner Mark Zuckerberg has revealed that the site now has over 300 million users, rising at a rate of 5 million per week. More importantly he said the website has become cash flow positive, well ahead of its target to do so by mid-2010.

One of the main criticisms of sites like Facebook is their lack of a clear business model that will generate long-term profits. Many have done a good job of raising investment but few have managed to give shareholders a return. A solid advertising structure along with its size means Facebook may soon be able to do so.

In similar news Twitter is closing a round of funding that will see it valued at $1bn. The site has also changed its terms and conditions to allow for advertising for the first time, giving the potential for a revenue stream in the months ahead.

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