Part 7/8:
Financial analyst Jeff Fischer highlighted that Facebook’s profit margins surpass those of Google when it was a similar size back in 2008, and are significantly higher than Alphabet’s current margins. With over 3 million businesses actively advertising on Facebook, and more than 50 million maintaining a Facebook page, there remains substantial room for growth.
The company's valuation metrics also paint an optimistic picture. Like Amazon, Facebook trades with a price-to-earnings (P/E) ratio in the mid-30s based on projected earnings for the upcoming year. Given the company's rapid growth rate, this valuation appears reasonable to investors, especially considering that actual earnings are expected to outpace current expectations.