"Amazon trades for 2.2 times revenue. Facebook, said to have 2010 revenue of $2 billion, has a price-to-sales ratio of 41.5."
41.5 is an extraordinarily high price-to-sales ratio. Facebook is not an ordinary company, to be sure, but is there even a historical precedent for this? Has there ever been a company which has traded at anything close to this ratio, without resulting in a burst bubble?
41.5 is an extraordinarily high price-to-sales ratio. Facebook is not an ordinary company, to be sure, but is there even a historical precedent for this? Has there ever been a company which has traded at anything close to this ratio, without resulting in a burst bubble?