Guess it's unmannerly to call you stupid.
So I'll call you yellow instead.
No yellow.
Ericsson has a business where they make money.
Some of the money will reach to the owners of the company.
As such people are interested in owning the company to get hold of that money. And because of that to get ownership of a part of the company cost money.
P/E for for Ericsson was 23.25.
For Apple 17.67.
For Google 27.16.
For Nokia 59.84.
For Facebook 74.47.
Facebook purchased WhatApp for 16 billion USD. I don't know what people thought it was work but 16 billion isn't something I would sneeze at.
As for Facebook valuation you can say what you want.
But the reality is that they ARE making money. And they are increasing the amounts they make quickly.
I don't know how much you've actually looked into it. Guess you may make your statement out of the IPO relative what the stock traded at later.
IPO price of Facebook was $38 18 May 2012.
In August 2012 it traded at around $18.
Mid July 2013 at $26.
And then it lifted to $54 in mid October 2013 and to $70 early march 2014.
Currently (15 min delay?) valued at $78.45 with a recent peak just above $80.
It was priced very high relative profits and yeah it did fall from $38 to $18. But it's up at $78 now at a better price relative their currents profits. So profits will have risen a lot over these 2.5 years.
You're free to argue it should be worth nothing. But considering they make billions that would be pretty stupid and I for sure would take a chunk of Facebook if it was given to me for free. (Currently valued at 216.79 billion.)