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A comment on Facebook investors look for exits. Parent comment

Re:Facebook investors look for exits by michaelchisari on Wednesday April 27, 2011 @06:53PM (#2491407)
Google had $30 billion in revenues in 2010. Facebook has an estimated $2 billion. 15x the revenue, but only 2.4x market cap.

Google also had a reported $8 billion in profits, and it's been suggested that Facebook's profits are meager.

Google also operates in a segment of the industry that is much less fad-driven.

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Re:Facebook investors look for exits by prostoalex on Wednesday April 27, 2011 @07:29PM (#2491519)
Why do people get excited about profits of a company that never pays dividends? Is it about preservation of capital? Or a hope to see a trickle down effect of dividend payments at some point?
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Re:Facebook investors look for exits by hendzen on Wednesday April 27, 2011 @07:49PM (#2491575)
The retained profits (much of which go to productive activities such as R&D) add to the value of the company. Theoretically, the market should see this and then revalue shares accordingly.
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