Facebook: Why The Drop, And What Is It Really Worth? [View article]
Thanks for your comments. I think that when we use comparable analysis, it's simply for illustrative purposes, for we need something to hang our hats on analytically, an anchor, if you will, especially when it comes to IPOs. Perhaps you could elaborate on what you mean by a socio/econ company? When it comes to the ridiculous IPO valuation that FB received, the numbers begged to be justified somehow, but not even comparable analysis could justify FB at $45. And to follow up, as I'm sure you're aware, in fact FB did trade below $20 before it recovered (and I would have covered at around that price, though I never shorted it). I don't put much stock into analyst estimates, but for what it is worth, FB, at ~$28.50, still trades at nearly 37x FY2014. In my opinion it's probably too expensive again.
Facebook: Why The Drop, And What Is It Really Worth? [View article]