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Facebook, Inc. (FB) Message Board

  • jblue1@gmail.com jblue1 Oct 31, 2013 10:43 AM Flag

    120 PE

    How will this "Growth company" ever justify this astronomical PE ratio if they don't plan on increasing news feed ads. The vast majority of there income is derived via these adds. I understand increasing users and ad prices in addition to monetizing instagram and video ads will generate additional revenue. However, if they ever want to be considered in the same fashion as GOOG, aka a PE of 20 or so, the would need to boost earnings by 6 times. I do not seen this as feasible and that is why I sold my shares today. I don't see this market cap as justifiable under this current managements direction. I do like this company, but until Zuckerberg decides to care about shareholders, there is no way the growth of FB will keep up with wall street expectations.

    Sentiment: Sell

 
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