Bear Stearns (BS) is one of the most respect investment banks around, when they’re not losing billions of dollars, that is. 

Robert Peck is, I’m sure, a smart fellow.  He’s got a CFA, after all.  He issued a report saying that social networking is an area Yahoo! needs to invest in.  Paid Content linked to the report, as did Tech Crunch today.

This is all nice and dandy, but there’s not a lot there that’s new.  Peck argues that Facebook, social networking’s #2, could fetch $5-7B in a sale.  Incidentally, we did the math too, and said that Facebook would get a low bid of $3.3B and a high bid of $6B.  We also said that Facebook would get more in an IPO, but at present revenue figures, the stock would head down, because unlike google who was doing over $1B in revenue when it IPOd, Facebook makes $100M-$200M per year with no sign of breaking through to $1B any time soon.

All to say, we laugh back at some of the things Henry Blodget said in the first era, and we get shocked and awed by some of the moves firms like BS do today, yet when they issue such reports, we seem to act like a bunch of fanboys without questioning the merit of the report in question.

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