Facebook founder Mark Zuckerberg would like you to confirm his friend request. Okay, not really. What he does want is your money. Facebook recently announced its intention to go public. This should have no effect on users of the site. There is no reason Facebook wouldn't continue to innovate at the frenetic pace it always has, infuriating some by changing its user interface every other second.

Investors however, should be and are watching closely.

Facebook is just a new player in a growing world of public tech startups. Groupon, a startup that offers users discounts on things like restaurants and show tickets, has yet to turn a profit. Facebook is turning a profit, but I wonder how long that can continue.

I know companies like Facebook and Google make their revenue off of ads. Yet, this almost doesn't pass the sniff test.

Sure, Facebook's ads are highly targeted by virtue of how much users share on the service. At the same time however, the ads are so small on the right side of the page that it's hard to believe companies are paying that much for them.

Perhaps the best thing to do is wait and see. Things have worked out okay for Google so far.

writergraham.com