> What about a recession would cause FB or Google to leave the advertising business, and not have some the largest advertising revenue whenever the recession is over?
I'm not suggesting they would leave the advertising business, I'm suggesting revenues could be lower as advertisers cut their spend, which would drop Google/FB revenue and make the current 12 PE more like a 25 during a recession. I guess, you can't just look at P/E ratios. They don't tell you too much.
> I don't see any titans falling in the next few years.
Well, they've fallen quite a bit since January. Haven't they?
I don't see anyone going bankrupt or anything, so if that's what you mean then yea sure I agree - hence I think they're attractive to buy now as well.
I'm not suggesting they would leave the advertising business, I'm suggesting revenues could be lower as advertisers cut their spend, which would drop Google/FB revenue and make the current 12 PE more like a 25 during a recession. I guess, you can't just look at P/E ratios. They don't tell you too much.
> I don't see any titans falling in the next few years.
Well, they've fallen quite a bit since January. Haven't they?
I don't see anyone going bankrupt or anything, so if that's what you mean then yea sure I agree - hence I think they're attractive to buy now as well.