Launched in February 2004, Facebook is a social networking service founded by Mark Zuckerberg with his college roommates and fellow students Eduardo Saverin, Andrew McCollum, Dustin Moskovitz and Chris Hughes. Early investors include Microsoft and Hong Kong tycoon Li Ka- shing, through his namesake charitable foundation. Facebook’s US$16 billion initial public offering in May 2012 generated huge investor interest although the shares subsequently slumped in price.

Facebook trades for 75 times the social network’s estimate for this year’s earnings compared to a multiple of 20 times for Google. Photo: Reuters

Facebook shares probably too high: Barron's

Shares of Facebook, which were given a boost last week when the social networking company reported first quarter results that largely met analysts’ expectations, may be over valued, financial newspaper Barron’s said.