tags: [potential/short] ...

Matt Stoller explains why the FB strategy of buying up the competition no longer implementable Matt is a great guy, but is focussed on the injustices and bad general economic consequences of monopolistic practices in the USA. I tend to read his stuff to understand why companies have most pricing power. Warren Buffett's strategy is only to buy monopolists, or at least those firms which face limited competition.

Although Stoller is not offering an actual analysis of the stock price, if FB no longer has the ability to knock out the competition it would seem logical that it should no longer deserve the same multiple. I guess it's trading on a P/E of 13, which isn't too demanding, compared to a P/E of 19 for $GOOG.