4 ms·

> equity is significantly overvalued relative to fundamentals Which fundamentals? The $117.9 billion in revenue and $39.4 billion of net profit in 2021 [1]?

> equity is significantly overvalued relative to fundamentals Which fundamentals? The $117.9 billion in revenue and $39.4 billion of net profit in 2021 [1]? The price to earnings ratio of 9.22, which is far lower than the NASDAQ average of around 28.0 [2]? [1] https://www.statista.com/statistics/277229/facebooks-annual-revenue-and-net-income/ https://www.statista.com/statistics/277229/facebooks-annual-... [2] https://ycharts.com/companies/NDAQ/pe_ratio https://ycharts.com/companies/NDAQ/pe_ratio

adam_arthur 4y ago
Those stats are for now, not then. Good try though And they are vaporizing all of their FCF by reinvesting into the metaverse. Or were until the stock continued to collapse. It’s fair value here if you assume the metaverse is actually something they can monetize in a big way. Too far off for most investors