Nice summary. Must take issue with a couple of points. "$2 billion revenue for $400 million profit gives a P/E ratio of 125. That is simply nuts." More likely

Nice summary. Must take issue with a couple of points. "$2 billion revenue for $400 million profit gives a P/E ratio of 125. That is simply nuts." More likely it means that the sum of Facebook's earnings growth and discount rate needs to be about 15 percentage points higher than your favorite comparison point. Is that nuts? Merely debatable I would say. "Facebook has scale and can only generate $400 million in profit a year and only a 20% profit margin? That's less than impressive." Most of their investments can be expensed. Not so surprising really. I'm not a fan of the product or the stock, but I don't believe absurdity is approaching. Much older Google and Amazon have monetized adequately.