"In its last quarter Facebook had $1bn of revenue and 40% pre-tax operating margins" The key execs and advisors involved in IPO were not conservative with the

"In its last quarter Facebook had $1bn of revenue and 40% pre-tax operating margins" The key execs and advisors involved in IPO were not conservative with the valuation. Do not be surprised if those same biases influenced some of the pre-float numbers. A cautious CFO may not always tell people what they want to hear short-term - but they will deliver a much stronger performance over the long.