Companies are allowed to carry high P/E ratios because they've recently undergone a period of exponential growth and people believe they can continue to execute at the same pace. Amazon (amzn) is the perfect example of a stock that continually exceeds people's expectations while carrying a high P/E ratio -- and the stock has responded accordingly.
From listening to Zuckerberg I think he's a true capitalist, more interested in creating long term value than making a quick buck. I'm sure he's not excited that some very hopeful people who believed in his company are hating him right now because his stock (temporarily) seems over-priced.
From listening to Zuckerberg I think he's a true capitalist, more interested in creating long term value than making a quick buck. I'm sure he's not excited that some very hopeful people who believed in his company are hating him right now because his stock (temporarily) seems over-priced.