FB - hot money flowing into Facebook

Facebook (FB) saw some significant gains after earnings came in broadly as the market had been expecting. FB closed +5.6% @ $28.97. Next soft resistance is the psy' level of $30, and then the high of the $32s from late January.


FB, daily

Summary

So, a rather strong daily gain for the hysteria surrounded stock that is the FB.

Roughly, earnings look to be around 50 cents a year, and that would give a PE of around 55/60.

On any basis, that is 4x the market average, and thus I find the current valuation as nothing less than stupid, but then...there are plenty of other more extreme examples like AMZN or NFLX.

see key stats @ Yahoo! finance

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As many still suggest, real long term value might be close to zero, but myspace and geocities were around for a fair few years before they were abandoned by just about everyone.