Why would anyone pay 69-115x EPS? Possibly for monetization growth, but that’s the biggest unknown for Facebook. I can’t justify paying a sky high multiple without more concrete proof the company is scaling a predictable, repeatable monetization effort.
Althuogh face book is overpriced at this time, it will become a stock worth having in your portfolio. I am seeing more and more ads saying "see us on facebook". Facebook has a lartge number of employees and they are not sitting around twiddling their thumbs. They are young, knowledgeble and inventive. Don't sell them short, by that I mean do not underestimate their talent.
I think your rationality will fall on deaf ears here. As if the 2000-01 tech implosion weren't enough, as if the South Sea bubble weren't still relevant, they WANT to believe so badly that no rational thought will get through to them.