3 ms·
I think what makes Facebook above average is that at IPO they are looking better than Google did at IPO. I think we can all agree Google is above average. 1) C
by jaxn 14y ago
I think what makes Facebook above average is that at IPO they are looking better than Google did at IPO. I think we can all agree Google is above average.
1) Current P/E is 74 (Google IPOed at 132 and was proven to be undervalued).
2) Facebook has higher revenues than Google did at IPO.
3) Facebook has more users, and more engaged users than Google did at IPO (though there is some question as to whether or not FB can continue to grow users).
Yes, they have to figure out the "facebook way" of delivering ads, but if they do...
- joering2 14y agoBut in terms of business an revenue (that's what stock exchanges are all about), I can't help thinking that you go to Google to stare at advertise and click them! You go to Facebook to stare at friends' pictures and comment on them! Totally different behavior scenario!!! Its literally like running a public toilet on Times Square that is free of charge (so millions per year are using it!) and trying to sell a chocolate cakes on the premises! It won't work!!!
- quesera 14y agoGoogle IPOed into a growing market. It is not clear how FB's market or ARPU will grow from here. They left negative money on the table at the table at the IPO. Good for them, and probably good for their long-term prospects (big buffer), but from a retail investor perspective, the business has a lot of catching up to do to meet the market. I actually agree with the $10-15 conclusion right now, but the business has a chance to make up some of that gap before the share price goes there. Probably. (not invested, and happily so)