- Facebook (FB +3%) is now up 38% since delivering its blowout Q2 report (I, II), and is closing in on its IPO price of $38.
- EPS estimates have soared since the report, as analysts strike a more bullish tone. The 2013 consensus has risen to $0.71 from $0.57, and the 2014 consensus to $0.94 from $0.78.
- That still leaves the company trading at 34x 2014E EPS after backing out $10.3B in cash/investments. Facebook's huge sales, R&D, and capex investments have much to do with its multiples.
Facebook continues rallying, IPO price in striking distance
Jul 30 2013, 11:02 ET