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Indeed. Facebook is great, but I highly doubt a P/E ratio of 107 is warranted. Growth is sort of slowing, and monetization is good but not amazing. People are s
by charlesdm 11y ago
Indeed. Facebook is great, but I highly doubt a P/E ratio of 107 is warranted. Growth is sort of slowing, and monetization is good but not amazing. People are spending more and more time on mobile, which generally is harder to monetize than the web.
It's a good company (and I've owned the stock before), but I wouldn't mind seeing the P/E ratio come down a bit, to the 30-50 level.
Edit: Don't trust analysts, they get it wrong plenty. Try to understand the catalysts that drive the long term stock price of a company.