Warning for an Eager Facebook Investor (my shortest article, ever!)

Here is a thought for an eager Facebook investor: Google revenue – $40 billion; market capitalization $200 billion (plus $40 billion of cash).  Facebook revenue $4 billion; market capitalization $100 billion. So Facebook has to grow revenue 10x for you to double your money.  Good luck! follow on twitter Vitaliy N. Katsenelson, CFA, is Chief…

Here is a thought for an eager Facebook investor: Google revenue – $40 billion; market capitalization $200 billion (plus $40 billion of cash).  Facebook revenue $4 billion; market capitalization $100 billion. So Facebook has to grow revenue 10x for you to double your money.  Good luck!

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Vitaliy N. Katsenelson, CFA, is Chief Investment Officer at Investment Management Associates in Denver, Colo.  He is the author of The Little Book of Sideways Markets (Wiley, December 2010).  To receive Vitaliy’s future articles by email, click here or read his articles here.

 

Please read the following important disclosure here.

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