to pick a nit. To date Facebook's P/E is high because Facebook said so. Anytime a company takes a funding round, whether from a single incubator or a dozen VCs, the transaction implicitly prices the company pursuant to growth expectations. (And that's not even mentioning Facebook's heavy trading in SecondMarket.) Just because a market is restricted and low volume doesn't mean it doesn't exist; any time a transaction occurs, you'll find a market behind it.
Do you think taking the Facebook PE and comparing it to Apple is some major revelation that investors, or most people who read a newspaper, do not know? Every FB thread on HN has somebody pointing out PE, and then a thousand responses on what is wrong with that argument. PE is used to compare mature yield stock, the type that all those Warren Buffet books talk about. With Facebook still being a young company the numbers to track are revenue growth and price/revenue.
emmett 828 days ago link
No, Facebook's P/E has been high because people having been willing to buy the stock at a high price. Facebook can't dictate what price other people are willing to pay. It's always been set Air Max 2017 Triple Black by the market, from day 1.
if the "market"'s expectations are Nike Air Max White Outfit
inline with their own and to that end P/E is great.
though I concede its a semantic argument (and I wasn't referring to its private sales which is valid), but the $38 price was dictated by FB and propped up (artificially) by MS it was not market set.
I disagree Nike Air Max 2017 Black Gold
The PE works out to be so high because there is a growth expectation from Facebook's one billion users. To date Facebook's P/E is high because Facebook said so. And I think a lot of people are interested to see Nike Air Max Orange Blue
Do you think taking the Facebook PE and comparing it to Apple is some major reve
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