InvestorsHub Logo
Followers 9
Posts 1495
Boards Moderated 0
Alias Born 06/23/2013

Re: 4retire post# 21944

Monday, 02/08/2016 5:44:09 PM

Monday, February 08, 2016 5:44:09 PM

Post# of 38848
@ 4retire,

Do you know why the PE of Amazon is 390, and Facebook is 77 ? By the way when FB first went IPO, it did not make money not till recently due to its business of Mobile .

The reason that FB has a PE of 77 as of today, and its IPO price was $48 something if I remembered correct even it did not make money at that time is because 1) its business model, FB is a social network company, nothing more and nothing less, and analysts once even questioned how FB will make money . It has large subscriber base , as a result investors assume it can attract a lot advertisement business, and recently its mobile business is growing due to the portable devices, mainly smart phone as a platform , but in reality , FB is not a high tech company, and t does not have monopoly power, which means some advanced technology only FB can deliver , and it is not short of competitors, such as Google . The same for Amazon, it is only a logistics company and it just build up a platform to sell product, and it is not a high tech company either , which means it has certain technology everyone needs and only Amazon can deliver .

If TMMI can really deliver the technology , which means a technology which can deliver very high compression ratio which can save companies a lot of money ,and Only TMMI has such technology, then I have no doubt that TMMI will enjoy a PE of 200+. But all in all, tMMI can deliver this time, instead of just a job or a talking story