Quote:
Originally Posted by $5 submissions
QUOTED FOR TRUTH
once the founders, initial investors and early employees' LOCK PERIOD expires and current market weakness persist (plus add in weakness in ad market due to economic uncertainty), this stock can dive down to 10 to 15 USD range. MIGHT be a good buy then since it is priced to its gills as it is.
|
They made $1 billion profit, that means the business is worth at best 5 years profit and with Internet businesses we know 5 years is a life time.
20% of $38 = $7.60
The only way they can justify this price in the Internet business is to become a rival to Google. And the odds on that happening are long.
Traffic is just one part of the process. It's nothing till you monetise it at a profitable level.