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Facebook needs to generate more revenue or if they go public, their stocks are going to tank like crazy after the speculation fades. Facebook's P/E ratio is out
by imkevingao 16y ago
Facebook needs to generate more revenue or if they go public, their stocks are going to tank like crazy after the speculation fades. Facebook's P/E ratio is out of proportion. Doesn't matter how many users Facebook have, if the company doesn't generate the proportional profits to match its valuation, then the company is going to go through some tough phases.
Many people are looking at the Facebook stocks like it's a Pablo Picasso painting, and with users twice as the population of United States, it's bound to be valuable. However, in the economy of supply and demand, the bubble will pop if it decides to go public. Unless Facebook can think new ways to earn more money.
But that's hard, because Facebook users hate changes. They aren't exactly Obama fans.