Facebook attracts over two billion users per month through its flagship platform and Instagram network. Facebook is one of my favorite business models as it embodies the “social monopoly” framework. The power of it comes from the fact that individuals or businesses are encouraged to use the platform given that everyone migrates to it as well. Practically speaking, nobody signs up on MySpace anymore for the fact that very few of the people that they personally know are likely to be users. People know that if they wish to connect with friends, family, acquaintances, etc., they’re best off joining the most popular social network available. In short, FB’s business model is perhaps the most organic form of scaling that currently exists in the business world.FB is still in its growth phase. The user base should grow as Internet availability expands throughout the world. Monetization strategies are growing, including advertising and live-streaming services, and I would still expect the company to grow its revenue by 30% from year-end 2016 to year-end 2017. In terms of outside competition, many expect Snapchat (Private: CHAT) to siphon away market share from FB, but I believe the threat is minor and don’t view the two networks as direct competitors. In short, Facebook is a company with a great business model and company I believe is worth owning – but only, of course, at the right price, which I will cover in subsequent posts.