Is Facebook Already Out of Time?

The following video is from this week's Motley Fool Money radio show, with Chris Hill, Ron Gross, James Early, and Joe Magyer. Shares of Facebook fell nearly 12% on Friday in the wake of the company's first-ever earnings report. Even with the sell-off, shares are trading at a much higher multiple than stocks like Google and LinkedIn. In this segment, the guys analyze the challenges facing Facebook, including the struggle it faces in making significant revenue from its mobile platform. CEO Mark Zuckerberg said on Facebook's conference call with analysts that the company is investing heavily in mobile. Can Facebook make a good return on that investment soon enough to satisfy shareholders or is it running out of time?

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Chris Hill owns no shares of any of the companies mentioned. The Motley Fool owns shares of Apple, Google, Facebook, and LinkedIn. Motley Fool newsletter services have recommended buying shares of Apple, Facebook, Google, and LinkedIn and creating a bull call spread position in Apple. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days. The Motley Fool has a disclosure policy.


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  • Report this Comment On July 28, 2012, at 6:05 PM, Ogoing wrote:

    Facebook had a solid quarter. Wall Street has sky high expectations. Facebook proved that it can do good business, grow user base, make profits and find new ways to monetize. It is a real company. What's not to like? Give it some time. With over 1 billion users worldwide (soon), Facebook revenue and profits can only go up! Add to that China entry (hopefully this year). Many other businesses would love to be in their shoes...

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