Facebook Inc (NASDAQ:FB) shares hit a new all-time high in trading today as investors continue to see a positive future for the company’s shares. After hitting the new high of $42.26 earlier today, shares pulled back. Investors have been left wondering whether or not Facebook Inc (NASDAQ:FB) is entering a new valuation bubble.

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Shares in Facebook Inc (NASDAQ:FB) are trading at more than 200 times 2012 earnings. That’s a pretty hefty metric, but investors are looking for Facebook Inc (NASDAQ:FB) revenue to skyrocket in the coming years as the firm pulls in increased web advertising, and solidifies its position as the world’s social network. There are risks to this case, however.

Facebook’s future is not guaranteed

Facebook Inc (NASDAQ:FB) is a great company. The firm’s performance in 2013 is what led it to this point. Facebook has managed to improve monetization massively, and it has shown that it can make money off of its mobile offerings. The company has also shown that worries about falling user numbers that surface around its IPO were overblown.

Those were the trends that led Facebook Inc (NASDAQ:FB) to this point, and the firm has built itself a significant moat in the social networking industry. Facebook doesn’t make its money off of social networking, however, it makes money from advertising. There’s a lot that could go wrong in the coming years.

Facebook Inc (NASDAQ:FB) might still lose users, but it would take a big turn to make the change dramatic. There is no comparable service available to users. Although there are many Facebook Inc (NASDAQ:FB) clones, none of them have the Facebook user numbers. The amount of users already on Facebook makes it more difficult for users to leave.

Facebook shocks are possible

Apart from losses in user numbers, Facebook Inc (NASDAQ:FB) could face considerable caps to its revenue power as it comes up against its major competitor, Google Inc (NASDAQ:GOOG). Revenue growth might stall at certain levels as the company comes into contact with massive competition from Google.

Facebook Inc (NASDAQ:FB) has a potentially lucrative future ahead, and though the company is not yet bubbling, the possibility is there as the company continues to break its all time high prices. Though there are risks, the company has not entered bubble territory yet. As the price heads higher, it is unclear what to expect from the market.