The Facebook cult devotees haven’t been silenced by the botched IPO

Facebook is indeed, as Blodget says, extremely expensive relative to its expected earnings over the next year or two. But, unlike most businesses, Facebook’s long-term upside has nothing to do with its expected earnings over the next year or two. It’s believed by many to be extraordinarily valuable not because of its advertising income but because it has a real chance of becoming a company unlike any that has ever existed before, with the possible exception of pre-breakup AT&T.

It's amazing how the idea that Facebook somehow succeeded in abolishing the traditional business model (its 'upside has nothing to do with its expected earnings over the next year or two') is surviving even the most botched IPO in stock market history. Despite this article being almost surreal in its naivety, it makes fascinating reading.