What's Facebook Worth?

The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics across the investing world.

There's been quite a lot of coverage of Facebook, of late. And much of it has been very negative. David and John both took close looks at valuation models that were shared by Henry Blodget and Aswath Damodaran. While their work was very impressive, David makes the point that Facebook's future options are extremely difficult to account for. One way of evaluating those options is to take a closer look at the value drivers -- growth, margins, and returns -- and see how they perform over time. That's why John and David bought shares in the company for their 10-Bagger portfolio. There's no better teacher than having a bit of skin in the game.

Big tech names might gather a lot of investor attention, but the truth is that they're playing second fiddle to an even larger revolution in technology. To better prepare investors for this new revolution, The Motley Fool has just released a free report on mobile named "The Next Trillion-Dollar Revolution" that details a hidden component play inside mobile phones that also is a leader in the exploding Chinese market. Inside the report, we not only describe why the mobile revolution will dwarf any other technology revolution seen before it, but we also name the company at the forefront of the trend. Hundreds of thousands have requested access to previous reports, and you can access this new report today by clicking here -- it's free.

David Meier has no positions in the stocks mentioned above. John Reeves owns shares of Google. The Motley Fool owns shares of Facebook, Google, and LinkedIn. Motley Fool newsletter services recommend General Motors Company, Google, and LinkedIn. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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  • Report this Comment On May 30, 2012, at 1:53 PM, thesunbird76 wrote:

    Facebook is worth $4.00 per share on a good day. $28.00 a share is throwing money into the wind.

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