

Facebook’s stock should trade for $13.80 - mck-
http://www.marketwatch.com/story/facebooks-stock-should-trade-for-1380-2012-05-25?link=MW_story_popular

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mck-
"Assuming that its five-year return is equal to the stock market’s long-term
average return of 11% annualized, Facebook shares currently would need to be
trading at just $13.80."

I think it is odd to be comparing FB with the average market. Quite an
assumption, fundamental to his calculations.

FB is threading on a new paradigm, similar to what Google/Apple were.
Obviously, comparing them to historical averages does not make sense either
(at the time), since no comparable paradigm existed.

