Yes. A P/E rate this high implies that the market believes Facebook will considerably increase its earnings in the future. The lower P/E ratio of Google and App

Yes. A P/E rate this high implies that the market believes Facebook will considerably increase its earnings in the future. The lower P/E ratio of Google and Apple implies that the market does not believe in significant earnings growth in the future. You rarely buy a stock looking only at the company's present situation. For instance, Ford for a long time had a price/assets value smaller than 1, which meant that one dollar of Ford stock gave you more than 1 dollar's worth of Ford's assets. But during this time, Ford was also losing a lot of money.