P/E is about predicted growth. There's little reason to invest in non-dividend stocks unless you expect the company to grow in value, so predicted growth is a m

P/E is about predicted growth. There's little reason to invest in non-dividend stocks unless you expect the company to grow in value, so predicted growth is a much better metric than current profit. As your post's parent points out, Amazon have depressed earnings due to a heavy investment in expansion. Plus, Amazon's growth strategy (go international and sell more digital goods) is both obvious and working well for them (based on YoY revenue). Facebook have already-declining revenue and only speculative growth strategies, as they have peaked out the "obtaining users and selling impressions" strategy and they haven't proven that they have a method for converting mobile users to revenue.