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I know this is flawed logic and doesn't account for a number of variables, but: The most surprising fact in this article is that, if this is true, Facebook is
by aspir 15y ago
I know this is flawed logic and doesn't account for a number of variables, but:
The most surprising fact in this article is that, if this is true, Facebook is essentially 1/2 of a Microsoft in terms of valuation. As much has Microsoft has been lagging over the past few years, I just don't think that Facebook is 1/2 of a Microsoft at this point. Maybe 1/5 of a Microsoft.
- Retric 15y agoBased on a sane P/E and assuming strong revenue growth and minimal risk Facebook should sit around 1/15th of a Microsoft. If they can hit 10billion / year in revenue in 3-5 years they might be worth ~1/3 of Microsoft but IMO anyone buying Facebook at 100billion is an idiot or banking on the greater fool theory when there are not all that many fools left. PS: IMO, the odds Facebook will be worth 400 billion in 5 years is much worse than the chances it will be worth less than 25 billion in 5 years. Buying a sock with no dividends in sight, a strong chance of losing 75+% of it's value and little real room for growth is a poor long term prospect. In the short term day traders may be irrational but the market is a fickle beast and can turn on a company vary quickly.