[adam_arthur]

Well, if your judgment of fair value is driven by relative price alone, and not fundamentals, you can believe whatever you want about what’s cheap or expensive.

If you look at history, everything converges back to fundamentals in the long run; as many tech investors are starting to find out.

But to answer more directly, the current price is only good value if Facebook can grow its earnings over time. Right now they’re shrinking.

Companies with shrinking earnings tend to get single digit multiples