Right. Just about everybody in the world who MIGHT want to be a FaceBook user, HAS ALREADY BECOME a FaceBook user. They are close to saturating their user market. Their revenue stream now is probably as high as it will go. So what justifies the enormous multiple over earnings?
Do you pay for membership? I don’t so it doesn’t matter that they won’t add significant numbers of new users. What matters is they have access to a tremendous pool of consumers. Lots of companies will pay for access to their info and to present marketing info to them.