Rofl... Classic Fall For F B Shares.... :p As Expected...

[Spartan]

[img]http://i2.cdn.turner.com/money/2012/05/21/markets/facebook-stock/chart_ws_stock_facebookinc_2012521111238.top.png[/img]

Facebook's stock slid below its offering price in morning trading on Monday and stayed below that level, following a lackluster debut day.

Facebook ([url="http://money.cnn.com/quote/quote.html?symb=FB&source=story_quote_link"]FB[/url]) fell as low as $33 in the first half-hour of trade, but it was holding around $34.10 at 12:30 p.m. ET. That's nearly an 11% drop from Friday's $38.23 closing price.

[Sastrygaru]

anthe anthe.. anukunnatte jarigindi..

[Bithiriseenu]

[img]http://lh3.ggpht.com/_vGgr3WUJEdg/S-fC_SE6u4I/AAAAAAAACPE/_WmjDkOCK6c/s128/PAwan%20%2823%29.gif[/img]

[k2s]

[quote name='ChittiNaidu' timestamp='1337622577' post='1301837291']
[img]http://i2.cdn.turner.com/money/2012/05/21/markets/facebook-stock/chart_ws_stock_facebookinc_2012521111238.top.png[/img]

Facebook's stock slid below its offering price in morning trading on Monday and stayed below that level, following a lackluster debut day.

Facebook ([url="http://money.cnn.com/quote/quote.html?symb=FB&source=story_quote_link"]FB[/url]) fell as low as $33 in the first half-hour of trade, but it was holding around $34.10 at 12:30 p.m. ET. That's nearly an 11% drop from Friday's $38.23 closing price.
[/quote][img]http://www.picasion.com/pic16/5b209160f8dbfa846630cc82a4d536b5.gif[/img]

[khandada]

Facebook P/E ratio prakaram $16/share undalanta..Adi nijam aite stock chala overvalue undi

[Bithiriseenu]

[quote name='sparty' timestamp='1337623700' post='1301837381']
Facebook P/E ratio prakaram $16/share undalanta..Adi nijam aite stock chala overvalue undi
[/quote]

nuvvu cheppedi ardham kale bhayya......
p/e ratio is determined by current price.....so p/e ratio prakaram ante enti [img]http://lh3.ggpht.com/-8WSYbhi4tEg/TmBjr_On5rI/AAAAAAAAAdY/aez2oXW7P7s/s400/28.png[/img]


nuvvu cheppalaunkunedhi ila cheppali

p/e ratio= 1 prakram $16 emo....also a stock doesnt hav to trade at p/e ratio 1.

[khandada]

[color=#333333][font=Helvetica]
When looking back at the 2011 numbers, Facebook’s trailing price-to-earnings ratio at the IPO price was about 104:1 (based on 2011 earnings of approximately $0.365/share). This can be compared to Google Inc (NASDAQ:GOOG), which posted $33.00 in earnings in the last twelve months, and is trading at a trailing P/E ratio of 18.62. It is true that Google’s earnings have only grown about 25% over the past three years, and Facebook saw a 67% jump in earnings in the last fiscal year, but these differences don’t justify a 5x multiple of Facebook over Google.[/font][/color][color=#333333][font=Helvetica]
There are actually many arguments that Google Inc (NASDAQ:GOOG) is the better investment, even for growth, with a solid revenue model that is rapidly expanding top line earnings. Google has similar growth prospects in China, for example, where its current penetration is not strong due to government restrictions and censorship. Google is also a more diversified company, whereas Facebook is somewhat of a one trick pony.[/font][/color][color=#333333][font=Helvetica]
If Facebook was to trade at even 2x the P/E ratio of Google, based on growth expectations, we would be looking at a share price of approximately $16.25/share. While it may not be wise to actively short Facebook at this time, due to retail enthusiasm that may not have yet died, there is a strong case for Facebook having a long fall to the floor if investors can’t buy their exponential growth story. However, as always we recommend investors ask their investment advisers about any potential transactions.[/font][/color]

[khandada]

[quote name='Bithiriseenu' timestamp='1337624256' post='1301837442']
nuvvu cheppedi ardham kale bhayya......
p/e ratio is determined by current price.....so p/e ratio prakaram ante enti [img]http://lh3.ggpht.com/-8WSYbhi4tEg/TmBjr_On5rI/AAAAAAAAAdY/aez2oXW7P7s/s400/28.png[/img]


nuvvu cheppalaunkunedhi ila cheppali

p/e ratio= 1 prakram $16 emo....also a stock doesnt hav to trade at p/e ratio 1.
[/quote]

correct e nenu cheppalanukunnadi sarigga cheppa ledu..look at the post above

[Bithiriseenu]

[quote name='sparty' timestamp='1337624425' post='1301837458']

[color=#333333][font=Helvetica]When looking back at the 2011 numbers, Facebook’s trailing price-to-earnings ratio at the IPO price was about 104:1 (based on 2011 earnings of approximately $0.365/share). This can be compared to Google Inc (NASDAQ:GOOG), which posted $33.00 in earnings in the last twelve months, and is trading at a trailing P/E ratio of 18.62. It is true that Google’s earnings have only grown about 25% over the past three years, and Facebook saw a 67% jump in earnings in the last fiscal year, but these differences don’t justify a 5x multiple of Facebook over Google.[/font][/color]
[color=#333333][font=Helvetica]There are actually many arguments that Google Inc (NASDAQ:GOOG) is the better investment, even for growth, with a solid revenue model that is rapidly expanding top line earnings. Google has similar growth prospects in China, for example, where its current penetration is not strong due to government restrictions and censorship. Google is also a more diversified company, whereas Facebook is somewhat of a one trick pony.[/font][/color]
[color=#333333][font=Helvetica]If Facebook was to trade at even 2x the P/E ratio of Google, based on growth expectations, we would be looking at a share price of approximately $16.25/share. While it may not be wise to actively short Facebook at this time, due to retail enthusiasm that may not have yet died, there is a strong case for Facebook having a long fall to the floor if investors can’t buy their exponential growth story. However, as always we recommend investors ask their investment advisers about any potential transactions.[/font][/color]
[/quote]
he is not entirely talking abt facebook p/e........he is comparing googles p/e and assuming if fb also trades atleast 2x times p/e of google then its $16

[Bithiriseenu]

FYI ...fb's current p/e as of now is 122.37......and if it has to trade at p/e = 1....then it would trade at $ 0.31