Earnings have changed the outlook totally, and several analysts have been proven wrong. There were increase in the price targets by some analysts recently, and that was viewed with a lot of skepticism. When it comes to these kinds of stocks, no one discusses historical valuations. Even high forward P/Es are acceptable as they are valued on future promise. It is good that the stock has managed to reach respectable levels after few quarters of languishing. No one expected such a great performance, and the surprise element added to the momentum. Not that all is going to be great, but one can not be overly pessimistic about Facebook now, at least for a few quarters. If this bottomline growth trend continues, then the valuation may get better and more acceptable. Then, the corrections, if any, will be reasonable. There were a lot of doubts due to reduced user interest and loyalty, and threats from other sites like Tumblr etc., but at least for now, nothing terrible is apparent. The mobile revenues increased tremendously, and that is one of the main reasons for the excitement. The contribution is expected to increase further as more users shift from the PC to mobile devices. It still has tremendous cash and can continue the acquisition of businesses / good ideas which may strengthen its competitive ability. Yappn (YPPN) is launching a multilingual social media platform where people can chat, discuss in their own language, without having to worry about the language barriers. The beta testing of the platform has been a great success so far. Now Facebook is more than double its low of around $17.55, and is gaining momentum every day. The recent movements have been backed by tremendous volumes, and there has been lot of follow up buying after the initial strong reaction to the earnings. It may take a breather and there may be corrections, but now the prospects look different.