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How can Facebook be valued so highly with such low profits?
01-20-2013, 02:27 PM
Post: #3
Spotty J Offline
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Although that's a high valuation for that amount of profit, it's not totally outlandish or unprecedented. Companies that are growing their profits and revenues very fast usually have high multiples (ratio of market valuation vs. net income.) Facebook is growing very fast, and is expected to be very profitable and influential.

In other words, people are afraid they'll miss out on Facebook becoming as valuable as Apple (400+ billion dollars).
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Messages In This Thread
[] - Bored Goblin - 01-20-2013, 02:27 PM
[] - Spotty J - 01-20-2013 02:27 PM
[] - movngfwd - 01-20-2013, 02:27 PM
[] - Walter - 01-20-2013, 02:27 PM
[] - Bob The Builder - 01-20-2013, 02:27 PM
[] - SkyBlu✈ - 01-20-2013, 02:27 PM

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