Confession: I Don’t Think Uber Is Actually a Great Business (Yet)

Re:Confession: I Don’t Think Uber Is Actually a Great Busine... by justapassenger on Saturday December 10, 2016 @10:09PM (#13149388)

~10 P/E is ratio for a well established, stable business - ones that maybe deliver 10% growth. FB revenue growth is still insane - https://www.wolframalpha.com/input/?i=facebook+revenue - once that stops, honeymoon will be over.

But FB is stabilizing - https://www.wolframalpha.com/input/?i=facebook+p%2Fe+ratio+c... - P/E is dropping even as stock is going up. Market is betting that in a couple of years revenue growth should stabilize.

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Re:Confession: I Don’t Think Uber Is Actually a Great Busine... by edblarney on Saturday December 10, 2016 @11:05PM (#13149538)

"FB revenue growth is still insane"

Agreed, but in order to justify the massive P/E they would have to be growing quite a lot for the next 10 years.

I don't seem them delivering this kind of growth over that time.

Maybe.

Google was able to do it for a long while.

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Re:Confession: I Don’t Think Uber Is Actually a Great Busine... by justapassenger on Sunday December 11, 2016 @02:32AM (#13150025)

Google has P/E ratio of 28. Facebook P/E ratio is right now only ~60% bigger, at 46 (and it already showed huge drop from >100 last year, as earnings are catching up with investors bets).

G revenue is growing at the rate of ~20%, while FB is doing >50%. If stock price for FB growth continues, it'll reach Google P/E ratio pretty soon - not 10 years. More like a year.

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