Facebook, although it has plenty of growth left, is a relatively mature company. Current revenues are $4.25B. Will its revenues eventually hit $20-$25B, closer to justifying its IPO valuation, not sure, but I doubt that market will continue to expect that in the intermediate term future. Similar to what happened to linkedin, which has fewer competitors, I am whimsically predicting that the share prices will drop by 50% of its opening trading day high.
Facebook has been "priced to perfection". There are much greater chances for it to disappoint than meet expectations.
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Okay. I use facebook alot. Do you?
ReplyDeleteI use it occasionally.
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