Even trying to interpret in the most charitable way, I can't view what the author is writing as making sense in any way.
Just because the SEC allows a metric to be used doesn't mean investors are going to use it, and most definitely are not forced to use it in how they calculate the value of the shares they are purchasing. The fact that Facebook has amazing profit margins, ability to scale, and great revenue numbers also undermines the author's point.
Just because the SEC allows a metric to be used doesn't mean investors are going to use it, and most definitely are not forced to use it in how they calculate the value of the shares they are purchasing. The fact that Facebook has amazing profit margins, ability to scale, and great revenue numbers also undermines the author's point.