Facebook released their numbers in preparation for an IPO, showing 2011 revenue of $3.7 Billion and profits of $1 Billion. Speculation is the IPO will be valued as high as $100 Billion.
This would be a P/E of 100. That’s high, but then P/E’s are not as significant an indicator for young companies with a lot of growth potential. So can Facebook grow enough to justify a $100 Billion price tag? I’m not so sure.

The easy justification goes like this:

Facebook has been focused on user growth and they were still growing 100% …

Sometimes you look at a stock like Netflix when it was trading at $300+ and think “Here is a great company in a market with super growth, but how can I justify the price?”
Well, it turns out you don’t have to justify the price because the market is beating the shit out of the stock. It’s trading after hours right now at around $86, and who knows where the market will take it.
Hip Egg had the next level of support at around $60, so I would look for the price …

This is happening to me, with one of my stocks right now: RCRC.
A few months ago, I bought about 50 shares of RC2 Corporation (RCRC), a maker of die-cast  and wooden toys, at $20. My wife and I were looking for an investment idea based on the toys and media we’re buying for our 2-year-old son. What I’d really like to do is own Thomas the Tank Engine, but the company owning the license (HIT Entertainment) is privately owned. The best we can do is to buy the companies with contracts on …

A couple months ago I opened a position in Activision Blizzard (ATVI). Blizzard is the Pixar of the gaming industry. All of their games are blockbusters. The most notable title World of Warcraft collects $15/month from their millions and millions of players.
I got interested in the stock after picking up Star Craft 2, another blockbuster game from them. I knew that game was going to sell better than expected. I had been watching pro Star Craft 2 tournaments that were run off the game’s beta for a few months. At …

I still own a few shares of GOOG. It’s felt overpriced recently, but I’m holding onto a minimal amount at all times and trying to add more over time. So I’m hoping the price drops a bunch so I can pick up more cheaply.
Do a search here for GOOG for my previous thoughts (years old), but I basically think that the world will continue to be drowned in data. Google’s goal to organize the world’s information and their expertise at scaling Internet apps puts them in a great position to …

From DealBreaker.com (via CrossingWallStreet):
Goldman Sachs just revealed in an SEC filing that its traders made money on every single trading day last quarter, a record for the firm. Net revenue for trading was $25 million or higher in all of the first quarter’s 63 trading days with 35 of those days bringing in more $100 million, according to the filing.
That’s pretty amazing. They didn’t have ANY down days? How is this possible? Is the new Goldman Sachs playing it safe? I thought they were doing high risk trades? Were they …

Trying to figure out what to think about this: (from BusinessWeek)
The Nasdaq said after markets closed that it will cancel all trades of stocks that moved more than 60 percent from their price at, or immediately prior to, 2:40 p.m., when the slide started. The cancellation applies to trades executed between 2:40 p.m. and 3 p.m.
Were there true “errors” leading to these trades (e.g. running trades that weren’t placed, or trades triggered because a stocks price was listed incorrectly)? Or were there just a bunch of people with stop losses …

Via blog.xplana.com:

Personally, I think this is a little conservative… though kids and professors on campuses would probably know more about how motivated professors are to switch to digital textbooks. What I do know is that no one likes spending $100 for a textbook and my professors were always empathetic to this.
Obvious investment plays are Apple and Google stock. Both are probably fairly priced now. None of these companies mentioned in the article are public, but there may be more like them. Another plan would be to find a publisher who …

There is a great QA with Herb Greenberg over at TheKirkReport. A few snips from the article:

…
Kirk: For good or for ill, how do you see financial journalism evolving with the use of blogs and other social media?
Herb Greenberg: The good: Leveling the playing field with an enormous amount of information. Bad: Zero accountability. Beyond traditional journalists, anybody can say anything under any name – real or assumed – and in the end those same people can disappear.
…
Kirk: In all of the research you’ve done, what are …

Got an email from the friendly folks at ycharts.com. I’m sure you all have your favorite chart sites and tools. Most of these sites don’t offer much more than the basics or hide some stuff behind fees. So I almost didn’t look at YCharts. However, their charts are really nice, and they can chart some data not available on other sites like EPS/Revenue/ROE growth. Take a look if you haven’t already.