Facebook Vs. Google Valuation Analysis

Forest City Enterprises (FCE.A) Q4 2012 Earnings Call March 28, 2013 11:00 am ET Executives David J. LaRue - Chief Executive Officer, President and Director Robert G. O'Brien - Chief Financial Officer and Executive Vice President Analysts Sheila McGrath - Evercore Partners Inc., Research Division Samit Parikh - ISI Group Inc., Research Division Trish Azeez

By Takeover Analyst:With all of the hype surrounding Facebook (FB), investors would be wise not to rush over to a punch bowl that has already been drunk. Rather, internet media investors should consider backing companies that have real penetration potential. Facebook is near its saturation point and, in my view, ready to collapse as the social networking craze comes to an end.

The MSM is echoing BoomBustBlog analysis today, as per Bloomberg: Facebook First-Quarter Profit Drops; Costs Almost Double

Christopher Grey submits:It's officially the year 2000 again. Facebook, with $2 billion of revenue and $700 million of earnings, is valued by Second Market's latest share auction at $70 billion. This is a roughly half of Google's (GOOG) valuation, net of tangible book value, even though Google has $25 billion of revenue, $10 billion of earnings, and higher operating margins than Facebook.

Trefis submits: LinkedIn’s (NYSE:LNKD) stocked opened at $83 after its IPO was priced at $45 and is now trading around $100 implying that those select few investors that received stock allocations this morning are sitting on capital gains in excess of 100% on the first day of trading!

By TradingFloor:We've written a lot about Facebook (FB) at TradingFloor.com, and our analysts have respectfully agreed to disagree about whether it is a good investment.

By Thomas McLaughlin:What's the right valuation for Facebook (FB)? Discussion has tended to focus on P/E ratios and (largely unfavorable) quantitative comparisons to other major internet company IPOs in the last dozen years, notably Google's (GOOG).