Facebook PE of 1775 how does this make sense?

N

noob_trad3r

Curious paying 1,775 times earnings for a company that does not seem to have such earnings growth future.

Is the math wrong or why is trading for such a high p/e? What am I missing.

All companies at such lofty P/Es always crater 4 years down the line.
 
Very small E results in a very large P/E. Imagine if they had zero earnings. The P/E would be infinity! :eek: :p It just demonstrates one of the flaws of P/E ratios. Not that I would buy any FB.
 
The beauty with all these social networking sites like fb is some 12-year old genius kid can one day write some code and develop a new fb that's times better. People abandon old fb in droves and its value becomes nothing.

It happened before with Myspace and News Corp lost millions. Zuker is a smart man though, went IPO and sold to all the suckers at the very top.
 
I wouldn’t touch FB either with a 10 foot pole. I guarantee you in 10 years there are going to be a lot of angry suckers who are left holding the bag. Facebook is popular but not financially viable enough as a company.
 
Quote from Bolts:

Very small E results in a very large P/E. Imagine if they had zero earnings. The P/E would be infinity! :eek: :p It just demonstrates one of the flaws of P/E ratios. Not that I would buy any FB.
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there are good stocks and good companies. learning to know the difference is the wisdom and not becoming an "involuntary investor" matters.
 
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