13 cents GAAP eps missed whisper GAAP by a mile. So if you do the math ytd we have 22 cents GAAP - using 13 cents x 4 we have 52 cents & 31.20 is 2 times the growth multiple. It will be interesting to see where this goes in the am. Fair value is mid 20's.
so why is my previous post important re: whether they use GAAP or EBITDA earnings as a measure for FB.
Simple they should use GAAP because it reflects what the company actually did and if they do last q, FB was just shy of 9 cents. So if you give a bump to the upcoming earnings and say FB comes in at 11 cents GAAP earnings - if you extrapolate out and give them 11 cents on average for 4 qtrs this means 44 cents for the year. Is this generous - you betcha cause we already have just shy of 9 cents for q1.
anyway using 44 cents and if you give FB a generous growth rate of 30% and a very generous 2 multiple what do you get - that's right a stock price of 26.4 per share.
nobody in their right mind should be buying at 2 times earnings multiple or a 60 pe. So what is more rationale - well maybe a 1.65 multiple or a 49.5 (1.65 x 30) PE - where would that put FB in terms of rationale price - do the math - 21.78 per share.
as I said good luck to all - be careful longs on getting caught up on the hype - do the math
so if GAAP whisper earnings for FB is 15 cents then EBITDA whisper earnings by extrapolation for FB is 21 cents
I wold prefer to see them use the GAAP #'s for comparison for obvious reasons but they may give FB a pass and use EBITDA
Key will be forward look or guidance - so far this has been lacking or not provided by management
good luck to all
for fakebook to get to rocket's 16.5 cent target GAAP net income per share will have to rise 84% and this has to happen with the increased spending zucker has promised and delivered on without adding to revs on projects such as home and even instagram 15 sec video w/out the ad monetization.
84% increase in GAAP net income per share not happening - not even close
I think they reported something like 15 cents EBITD for the 1st qtr.
GAAP earnings as I said were almost 9 cents
217,000,000/2420000000 = 0.089669421
so the incremental leap to 15 cents GAAP is a huge chasm.
you would be correct vislandlaw that not a big leap if you used EBITD #s - but you do not run a business without including all the GAAP #s in your estimate