Thanks to Facebook's (FB -4%) selloff, the price tag for the Instagram acquisition is now only...


Thanks to Facebook's (FB -4%) selloff, the price tag for the Instagram acquisition is now only $758M. But as for Facebook itself, its market cap is understated by most sites, which fail to use its fully diluted share count. After today's drop, Facebook is still worth $54.9B. Short selling has much to do with Facebook's decline - FactSet reports 13.4% of the company's float is now shorted. The shorts have their arguments: Facebook still trades at nearly 26x estimated 2013 EPS  (exc. cash). (earlier)

From other sites
Comments (6)
  • Furbonacci
    , contributor
    Comments (364) | Send Message
     
    excluding cash to make multiples look better? at 26x they still look bad. this thing is going to be trading at 8 bucks
    2 Aug 2012, 06:21 PM Reply Like
  • Eric Jhonsa
    , contributor
    Comments (1276) | Send Message
     
    Excluding net cash/investments makes sense. I'd be glad to pay a 500 P/E for a company with a $1B market cap and $2B in net cash :).
    2 Aug 2012, 06:33 PM Reply Like
  • Furbonacci
    , contributor
    Comments (364) | Send Message
     
    so would i. but that is not the case here.
    4 Aug 2012, 12:52 PM Reply Like
  • chaslane
    , contributor
    Comment (1) | Send Message
     
    Should I stay or should I go? In at $38
    3 Aug 2012, 12:17 AM Reply Like
  • nsrini79
    , contributor
    Comments (7) | Send Message
     
    this will go down to 10 bucks soon, lockup period expires later this month and shares will go down
    3 Aug 2012, 02:04 PM Reply Like
  • BeachChicken
    , contributor
    Comments (375) | Send Message
     
    Aug. 15 with be a pivotal date on the lock-up ... on a decline am buying more then. In at 24.
    5 Aug 2012, 09:13 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs