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