5. Risky business model

Facebook’s team is composed more of geeks and less managers. It leaves very small wonder why the company runs on a very unstable business model. More than 82% of the Facebook revenue comes from advertisements, which is considered rickety by many business gurus. Even mainstream media firms like Disney, News Corp. and Time Warner do not follow business models with such a large fraction dedicated to advertisements. Upon that, Facebook publishes its earnings from individual users. Now that these earnings are presentable, they leave a positive mark on the investor, but when the earnings drop it might get tough for Facebook to handle its plan of publishing earning details.