There are only 2 ways to level out the P/E:
1) Increase Revenue (E = Earnings) at a higher rate than your stock prices is rising. So example, increase your revenue by 50% while your stock prices is rising by 20%. Eventually you'll get there, but lets be serious for a second. The numbers they are playing at, means a couple of things. If their only source of revenue is active Facebook users, then that means they will start raping the audience by increasing advertisement on-site, or utilizing their personal information more for off-site advertising. In the end the Facebook user will eventually get tired of getting their shit exposed, and start posting and interacting less and less.
2) Decrease stock price (P = Price), well I think we all know what a pump and dump scheme looks like, so I shouldn't have to elaborate. God forbid someone creates a hype piece on Zuckerberg getting a cold, and that effects markets world wide, since your retirement fund's manager decided to get in on the hype.
Kids, always look at the long term ability of a company, and ask yourself, are the users happy? Can Facebook become a Myspace or Friendster? If too many people are running in the same direction, that's usually a sight of a running with sheep, and let's face it, the underwriting banks like Chase, are the wolves here.
And the comparison with Google and Facebook is completely nonsensical. If people want information, they NEED to go on Google, since there really is no alternative, and they are giving the most accurate results. Facebook on the other hand is a playground for people with nothing to do except be on Facebook all day. So there will come a time, when eventually people will be less and less active, since the MASS of people don't NEED to be on Facebook, like they need to go to Google for something. Facebook will still be around, just like TV is around, and Radio is around as a means of communication. Unless they come up with a game changer at the 25th hour, like compete with Adsense, which… I don't know… Maybe they can pull that off… maybe.
1) Increase Revenue (E = Earnings) at a higher rate than your stock prices is rising. So example, increase your revenue by 50% while your stock prices is rising by 20%. Eventually you'll get there, but lets be serious for a second. The numbers they are playing at, means a couple of things. If their only source of revenue is active Facebook users, then that means they will start raping the audience by increasing advertisement on-site, or utilizing their personal information more for off-site advertising. In the end the Facebook user will eventually get tired of getting their shit exposed, and start posting and interacting less and less.
2) Decrease stock price (P = Price), well I think we all know what a pump and dump scheme looks like, so I shouldn't have to elaborate. God forbid someone creates a hype piece on Zuckerberg getting a cold, and that effects markets world wide, since your retirement fund's manager decided to get in on the hype.
Kids, always look at the long term ability of a company, and ask yourself, are the users happy? Can Facebook become a Myspace or Friendster? If too many people are running in the same direction, that's usually a sight of a running with sheep, and let's face it, the underwriting banks like Chase, are the wolves here.
And the comparison with Google and Facebook is completely nonsensical. If people want information, they NEED to go on Google, since there really is no alternative, and they are giving the most accurate results. Facebook on the other hand is a playground for people with nothing to do except be on Facebook all day. So there will come a time, when eventually people will be less and less active, since the MASS of people don't NEED to be on Facebook, like they need to go to Google for something. Facebook will still be around, just like TV is around, and Radio is around as a means of communication. Unless they come up with a game changer at the 25th hour, like compete with Adsense, which… I don't know… Maybe they can pull that off… maybe.
