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By Sean Udall
At $155-170 billion valuation, the decision starts getting a good bit tougher, but I'm probably willing to "try some" for a trade, as I would be playing for a move to the $200 billion range, and around here I would be a seller or certainly setting a trailing stop. Why? Because Google ( GOOG), in my view, is a hugely superior asset with a heck of a lot less risk for its $200 billion valuation, roughly $625/share, than Facebook at that same mark. Google is still growing between 25-30% and has a price-per-sales ratio of just 5x, and that is with more than 20% of the total market capitalization of the stock in net cash. Moreover, a Facebook at $200 billion valuation is no longer at 25x sales, it would come in at 50x sales. Compared to Google, it would be growing at twice the rate, but at 10x the sales multiple. So either Google is massively undervalued (something I believe), or Facebook is radically overvalued. Bottom line, if I can't catch any Facebook under the $150 billion valuation level, I'll gladly walk and watch the stock. Also, I'll relish Facebook trading at that $150 billion value or higher as I believe it will benefit many of my holdings. --Written by Sean Udall of Minyanville.