Maybe, that's a possibility.There is a very good possibility that Facebook will be in the same range as Google or Apple. an if any companies have a chance at $5

Maybe, that's a possibility.There is a very good possibility that Facebook will be in the same range as Google or Apple. an if any companies have a chance at $500b in 2020, Facebook are probably in the run. It's just not all that likely. There is also a possibility that Facebook won't be able to monetize with the same effectiveness as Google. It's also possible that Facebook will have fewer active users in 2020. Valueing a company purely in terms of its current cashflows and assets without taking into account its potential is wrong. I'm not saying that. Companies have quality and Facebook is absolutely a quality company. This way of thinking about businesses (good companies & bad companies) is rightly ingrained in the way we talk about companies. Talking about them as over/under valued companies seems shortsighted and it is, especially if you are talking about startups. When good startup investors make their most hopeful investments, valuation comes second. This is also true of bigger companies. Google has quality that Yahoo doesn't. Facebook has quality that Groupon doesn't. Warren Buffet evaluates companies this way - great companies at a fair price. but.. every rule of thumb has a reductio ad absurdum. "Valuation doesn't matter if the company is a great company" only goes so far. The way Facebook was/is valued takes into account their potential to grow like Google. It takes into account their potential to be the biggest company in the world. It doesn't take into account their potential to fail. The way its priced even defines as failure outcomes that should be defined as success. If Facebook can double its profits every 3 years for the next 10 years they'll probably still be a moderate failure for those who bought at $100b. If they double every 5 years, it'll be a bomb.