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Amazon, Facebook lead tech firms in reporting results based on GAAP

Industry responds to pressure from regulators and investors

Facebook stock trades at about 35x estimated earnings over the next 12 months. Add in equity compensation expense and that PE ratio jumps to 50, according to a Sanford C Bernstein & Co analysis.

San Francisco

FOR more than a decade, technology companies doled out heaps of stock to recruit top talent - then pretended this wasn't a normal part of doing business by reporting profit numbers that subtracted the cost. That's changing as the industry grows up and responds to pressure

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