Let's see if the $50B valuation is as outrageous as many seem to think. :)
Projecting earnings to $500m for 2010 gives them a P/E of 100.
I agree that a P/E of ~100 is high for a mature company: GOOG is ~24, YHOO is ~22, AMZN is ~75, EBAY is ~14.
Obviously Facebook isn't a mature company at the moment, though, but what their earnings would have to be to keep the $50B valuation with a P/E of 30? $1.66B
Earnings of $1.6B is a lot of money, but Yahoo had earnings of $1.4B last year, and I don't think it's unreasonable to expect that Facebook will be earning more than Yahoo within a couple of years.
Let's see if the $50B valuation is as outrageous as many seem to think. :)
Projecting earnings to $500m for 2010 gives them a P/E of 100.
I agree that a P/E of ~100 is high for a mature company: GOOG is ~24, YHOO is ~22, AMZN is ~75, EBAY is ~14.
Obviously Facebook isn't a mature company at the moment, though, but what their earnings would have to be to keep the $50B valuation with a P/E of 30? $1.66B
Earnings of $1.6B is a lot of money, but Yahoo had earnings of $1.4B last year, and I don't think it's unreasonable to expect that Facebook will be earning more than Yahoo within a couple of years.