I'd be interested to hear your thoughts on why Facebook is not overvalued, since you have as much of an understanding of it's financials and strategy as I do (assuming you don't have internal information, of course).

Facebook has stated that it's profits are in the "tens of millions" annually. Assuming, for ease of math, that translates to around $33 million a year, that puts their P/E at around 1000.

Their strategy seems to be a combination of ad space sales, and the sales of Facebook credits, although they've stated that the majority of their revenue comes from advertising. I'm very skeptical that advertising is the kind of business model that can meet that level of speculation.

Do you feel this is an incorrect set of conclusions, given the information culled from Facebook's representatives? Or do you feel that I've overlooked information about it's strategy or revenues? If you have information that conflicts, or adds to this, I'd be very interested, as I'm sure many people here would be.