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I bought at ~21 blended; I'm feeling good right now, but see this as a real long term bet. FB's position is so stratospheric that the opportunities to monetize

I bought at ~21 blended; I'm feeling good right now, but see this as a real long term bet. FB's position is so stratospheric that the opportunities to monetize are nearly endless; the rub is going to be in picking the right paths, not the lack of paths.

loganfrederick 13y ago
It really should be noted that no company with Facebook's P/E ratio has maintained that level for a long term. Facebook is still so overvalued that it will certainly come down from where it is now. If it doesn't, it would be the first company to do so. Even if it were to increase it's earnings, just a quick glance at Google Finance shows it's P/E 2,231. Regardless of other financials, that ratio is so off the wall that it could not be justified without an unprecedented amount of earnings growth. Making the claim that Facebook is the greatest company in the history of public companies is a stretch. [1] Cliff Asness of AQR's "Bubble Logic": http://papers.ssrn.com/sol3/papers.cfm?abstract_id=240371 http://papers.ssrn.com/sol3/papers.cfm?abstract_id=240371
- tanzam75 13y ago
  > Even if it were to increase it's earnings, just a quick glance at Google Finance shows it's P/E 2,231. Google Finance has not recalculated the ratios yet. At present, Facebook is trading around 100x earnings.