After the biggest initial public offering in history,
Facebook has disappointed investors large and small. Zynga, Facebook's big
driver in traffic, is performing more like a lead zeppelin than a Led Zeppelin,
according to a cnbc report. Facebook is
anticipated to report weak second-quarter earnings after the close on July 26.
The consensus estimate is currently 9 cents a share. Based on $29 a share and 9
cents earnings for the quarter, the price-to-earnings multiple is over 80.
I am not sure the International Space Station is at a much
higher altitude. At the current level of profits, it will take over 80 years of
earnings to pay for one share of stock. Facebook
trades an average of 13.3 million shares a day with a market
capitalization of $65.7 billion.
Over half the analysts covering Facebook rate it as a “buy”
or “strong buy”; 14 of the 27 analysts covering the company give a “buy”
recommendation; 11 analysts rate it a “hold”; and two recommend selling….
Read all about it at http://www.cnbc.com/id/48242297
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