We talk about this a lot in business school. I agree with a lot of what has been said here in terms of the many revenue streams and how the money is basically there, but John has a point, they are not google and we as the public have yet to see the huge earnings numbers that google puts up out of them.
I think FB has ridden a wave of "elite" investor speculation that has drastically inflated the share prices.
I had a class where some VC guys came in and spoke, and they basically said that in most cases, VCs will invest and base valuations on on potential revenue streams and not actual onces. If you wait for the money to be there, you will be too late to the party. So basically, it all remains to be seen, but everybody is betting that this will be seen and they will be bigger than Google.
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