Facebook may IPO 5X more expensive than Google(businessweek.com)
businessweek.com
Facebook may IPO 5X more expensive than Google
http://www.businessweek.com/news/2012-02-01/facebook-s-ipo-shares-may-be-5-times-as-expensive-as-google.html
1 comments
My question is “is that enough?” So if Google’s P/E is a 19.51 Facebook will IPO with a P/E of around 100. Ok that seems like a lot, right? Not really when you consider that linkedin has been trading at a P/E of 1,429.39. Purely on the social media craze. They in essence have been Riding coattails of facebook because they have been the biggest social based company that investors could get their hands on. So my prediction is a 300% increase on facebooks stock price on the first day of trading. Regardless if I think that valuation is justified or not, which I don’t.
Amazon's P/E is 130. I know the hype over Facebook will make them more expensive than Amazon.