Most of Facebook’s valuation is driven by 0.15% of Mobile Gamers

As you read the breathless reviews of Facebook’s Q2 2014 results, remember that the entire App economy depends on a tiny group of whales who spend hundreds of dollars a month on in-App purchases.

This is terrifying.

Facebook’s stock price is the second derivative of in-app purchase revenue. Things are highly geared, and incredibly risky. Which isn’t to say that you can’t keep making money on $FB; just know the risks you’re running.

It’s only a matter of time before Tim Cook makes a move to capture some of the App advertising market for himself.

All that said, well done Facebook!

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