A reasonable point, but Google has several years' worth of results under its bel... | Hacker News

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anigbrowl on Jan 3, 2011 | parent | context | favorite | on: Goldman Sachs invests in Facebook at $50 Billion v...

A reasonable point, but Google has several years' worth of results under its belt. When the IPO was conducted I think the company was valued at about $25 billion; now it has net annual earnings about $6-7 billion - so while the P/E ratio is still high, at least it's based on actual numbers. I'm not saying FB couldn't be worth even more than Google - it's just that since they've never had to file earnings statements etc. yet, all such estimates are far more speculative.

http://www.google-ipo.com/

http://en.wikipedia.org/wiki/History_of_Google#Financing_and...

http://blogs.wsj.com/digits/2010/03/04/investors-bet-on-pric...

2arrs2ells on Jan 3, 2011 [–]

I imagine Goldman Sachs has access to numbers that are a lot less speculative than the ones we have access to.

DuncanIdaho on Jan 3, 2011 | [–]

Or Goldman is so loaded with money that they have to put it somewhere - anywhere.

DuncanIdaho on Jan 3, 2011 | | [–]

Oh another (more probable?) possibility.

Goldman invested into FB - so they can now act as marketmaker for their customers.

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