Most businesses like the sticky customer. Engaged, besotted, addicted even. Facebook users are avid even rabid at times. So lets compare Facebook metrics to Altria which sells the almighty cigarette which also engages, besots and addicts.
Facebook Market Cap around $179 Billion
Altria Market Cap $71 Billion or a cool $108 Billion less for some strange reason.
Facebook Dividend Yield: Non existent they are still young and exciting and not paying any bills yet.
Altria Dividend Yield: 5.40% that does turn heads and has proven to be sustainable.
Facebook PE ratio: some 115. yes 115 not a typo. It’s stratospheric
Altria Dividend Yield: 15.8. seems much more reasonable. Very reasonable
Facebook fantasy cannot match the long satisfying drag of a cigarette.
George Gutowski writes from a caveat emptor perspective.