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> If their growth rates drops the stock would tank. Which is the case for literally every publicly traded company.
by jonknee 10y ago
> If their growth rates drops the stock would tank.
Which is the case for literally every publicly traded company.
- samfisher83 10y agoFB FCF is roughly 6B their cap is 370B. That is 60x of FCF. Most companies aren't that extreme. If there was a slow down in Growth their fall would be much larger then a more mature company because a majority of their valuation is based on growth.
- jonknee 10y agoThere is no denying FB is priced for growth, but it's growing like crazy while the rich valuation is coming down. Your $6B FCF figure is from last year and they are blowing that out of the water so far this year (+60% in the first 2 quarters). It's not fair to use today's stock price with last year's cash flow and decide that it's extreme.