Facebook Posts Killer Earnings: Report

IPO speculation heats up as word leaks that earnings could hit $2B
By Kevin Spak,  Newser Staff
Posted May 2, 2011 9:48 AM CDT
In this Feb. 11, 2011 photo, a Facebook page is seen on a computer in Montpelier, Vt.   (AP Photo/Toby Talbot, File)

(Newser) – Speculation about a Facebook IPO heated up today, after sources who have seen the company's recent financials told the Wall Street Journal that its earnings were a lot better than expected. The company is now on pace to earn more than $2 billion this year before taxes, interest, depreciation, and amortization, one source told the paper, which is well above the numbers floated when Goldman Sachs bought in last fall. The sources said that Facebook’s current finances, and its faster-than-expected growth, could justify a $100 billion valuation—or around twice the $50 billion valuation Goldman pegged on the company. Facebook declined to comment on the speculation.

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