Goog vs FB-Goog has 4 X market cap of FB but 15 X revenue of FB. FB has to have revenue of 16 Billion
in the next 2 years-what are the chances with 25% expected growth? Nil to NONE. FB will be lucky to have 6 Billion revenue mark in the next 2 years. FB is the MOST EXPENSIVE stock on WS. FB is overpriced by 4 times. Fair price is 28/4 = 7.00
That would only be true if FB was no so grossly overvalued. You need to realize that well over 5 years of growth is priced into the stock TODAY. The company has a lot of potential, but the stock has most of that potential baked in. Time will tell. If you know how to value stocks you likely would stay out of this one.