I've read a variety of perspectives on Facebook's IPO but I'm curious to hear the mindset of the HackerNews community. Do you plan on participating in the Facebook IPO, or to buy their stock in the days following the initial offering?
$100 billion valuation on $4 billion/year revenue(not profit)? No thanks, I'll pass. For perspective, Apple's $570 billion value is with $100 billion/year revenue
Growth in revenue is actually more important. If the p/e ratio is 20 and the growth in revenue is 25% each year, then its fine! (Source: Peter Lynch)
"The profit was $1 billion in 2011 and $606 million in 2010. The p/e-ration is then about 75 to 100. Peter Lynch once said that one should buy a stock if the p/e-ratio is lower than the growth in profit. The growth in profit for Facebook was 65 percent from 2010 to 2011. So the valuation is a little bit high"
