Facebook has stated repeatedly that it is focussing on growth, not on monetisation. If they are able to revolutionize banner ads by using the social graph outsi

Facebook has stated repeatedly that it is focussing on growth, not on monetisation. If they are able to revolutionize banner ads by using the social graph outside of their own territory they might be able to earn even more than google does (imagine the increase of CPM for news, video etc. if everyone is shown ads accordings to their interests). Besides the Internet is still growing fast with the regard to the number of users (especially internationally) and the time of usage (think of smartphones and tablets). Of course it is possible that they mess it up but the success of Google in 2004 was also far from certain. With a pe only about 30% - 40% above that of Amazon I don't think that the valuation is that absurd.