I find it laughable that people bought FaceBook (FB) at over 100 x earnings and are now crying foul because the stock hasn't gone up. At this writing, Google (GOOG) sells for less than 18 x earnings,; MicroSoft (MSFT) is under 11 x earnings; and Apple (APPL) costs less than 14 x earnings. They are solid performers in the same space as FB and are fairly priced. What would make a rational investor buy any stock at such a high premium as FB has been, and still is, selling for? I'd wait until it gets under 20 x earnings before I started to consider buying.
Update: 8/16/2012 - Yesterday I bought FB and its PE is still over 100, but it's close to half of what it was at IPO. I'm hoping that the company can capitalize on its 900 million users.
No comments:
Post a Comment