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

Industry responds to pressure from regulators and investors

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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