Great post about Facebook’s new challenges as a public company.

Kevin Graney

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Facebook stock was far from the home run many investors expected once the company went public.  After the company’s initial offering valued it at over $100 billion, the largest internet IPO ever, Facebook is currently worth a mere $68 billion.

Facebook is certainly making money.  They claimed $1 billion of after-tax profit in 2011 on revenues of over $3.7 billion.  But at a price-to-earnings ratio of over 100 are Facebook’s current earnings really that valuable?  Does the company have a feasible growth path?  Will they be able to further monetize their technology platform?

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