Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, social networking giant Facebook (Nasdaq: FB ) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at Facebook's business and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||Menlo Park, Calif. (2004)|
|Market Cap||$45.4 billion|
|Industry||Internet software and services|
|Trailing-12-Month Revenue||$4.3 billion|
|Management||Founder/Chairman/CEO Mark Zuckerberg
CFO David Ebersman
|Trailing-12-Month Operating Margin||13.8%|
|Cash/Debt||$10.2 billion / $706.0 million|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 58% of the 1,186 members who have rated Facebook believe the stock will underperform the S&P 500 going forward.
I look at [Facebook] as a fad stock, wrapped up in legal and privacy issues, with revenues based entirely on advertising. That business model works fine, except that no one wants to see ads on [Facebook]. Further, [Facebook] currently has no way to push ads through to its mobile apps. It's a business model I don't trust, in a company that is consistently plagued by privacy issues. I look for it to go the way of Zynga.
Of course, this short pitch doesn't even come close to telling the entire story for Facebook. You're in luck, though. The Fool's brand-new premium report on Facebook tells all sides of one of the most compelling growth stories in the world. You can grab your copy now, which comes with free updates for 12 months, by just clicking here.
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