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So the P/E ratio is currently about 398 (optimistically) assuming they earned $2M for each of the last 4 quarters.

Guess that isn't a useful metric for valuing 'social' companies! Anyone know what Google or Amazon's P/E ratio was when they went public?

Not sure of the exact number but you can see it on the charts here:

http://ycharts.com/companies/AMZN/pe_ratio

http://ycharts.com/companies/GOOG/pe_ratio

Edit:

Worked it out, GOOG was 154.29 and AMZN was 657.75

Amazon went public in 1997 for $18/share with 1996 revenues of $16MM and $(6MM) net loss.

Google went public in 2004 for $85/share at about 100 P/E

I think the most important thing is that they have healthy revenue growth (more than 100%). If they have $90M in revenue per quarter, they can do much better than $2M in net income, if they focus on that, but they are still focusing on growth. If I remember well, LinkedIn predicted a net loss for 2011.

Or worth about $30 per user, if you want to look at it like that.

Didn't see this before I posted my comment.

Don't you need to add the new shares being issued?