News for hackers. Stuff that matters.

A comment on Facebook Buying WhatsApp for $16B in Cash and Stock Plus $3B in RSUs. Parent comment

Re:Facebook Buying WhatsApp for $16B in Cash and Stock Plus ... by throwawaymsft on Wednesday February 19, 2014 @07:54PM (#7267965)
They have a P/E of ~100. They'd need to grow earnings 7x to reach a typical P/E of ~15.

Not saying it's impossible, but they're already very large. They have as many users as they're going to get (who isn't on there now?) so they need to earn 7x the income from the existing base.

[ Parent | on HN ]
Re:Facebook Buying WhatsApp for $16B in Cash and Stock Plus ... by the_watcher on Thursday February 20, 2014 @10:22AM (#7271161)
Well, they continue to add users (albeit more slowly), and the world population is increasing, so I don't see any evidence that they won't add any new users. They actually don't even have 20% penetration of "everyone" by monthly active users, and I'd argue Facebook is on its way to being as ubiquitous as email.
[ Parent | on HN ]