Why You Want to Own Facebook

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

Facebook's lockup periods from its IPO are expiring. The selling pressure will probably push the stock price down, giving investors a great opportunity to buy shares in November. Here's why investors will want to own Facebook.

First, the network has been built. Facebook now has more than 1 billion users around the world -- and it's still growing! Facebook has become a platform. But unlike Yahoo! or AOL before it, Facebook's connections are much stronger.

Second, Facebook wants to open up its network to developers. Developers will be able to market their applications, as Zynga did with games, and improve the Facebook experience.

Lastly, Facebook gets mobile. Facebook updated its mobile interface, and it is seeing more users who are more engaged. And it will work with advertisers to create more targeted, more effective ads over time. Google changed the way businesses market their product online through search advertising. Facebook is changing the game again with social advertising. It's still in the early stages, but it offers a tremendous opportunity.

Investors will want to take advantage of the selling pressure as the lockup period expires.

If you're interested in ongoing coverage of Facebook, check out our newest premium research report. There is a lot more to this company than meets the eye, so you may want to read more about it. Access your report by clicking here

David Meier has no positions in the stocks mentioned above. John Reeves owns shares of Google. The Motley Fool owns shares of Facebook and Google and has options on Facebook. Motley Fool newsletter services recommend Facebook, Google, and Yahoo!. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.


Read/Post Comments (6) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On November 03, 2012, at 12:13 PM, kthor wrote:

    I believe many FB employee's are just waiting for stocks to get to the range of $25-30+ to start mass selling ...or me waiting for FB to get to 15 for an entry point ..

  • Report this Comment On November 03, 2012, at 9:10 PM, Phaseiiia wrote:

    LOL You guys are DESPERATE for FB stock to go up, how many pump articles do you guys release?? You guys have been pumping this garbage since it was in the mid 30's. You guys must be deep underwater by now LOL.

    Im going to copy and paste my post from the other FB pump article you guys wrote just a few days ago.

    ---------------------

    After seeing so many complete disastrous predictions form you two, I just had to register and comment.

    I have never seen such atrocious investment advice in my life. Im not talking about this article, but the SEVERAL you have put out. You two should be kept very VERY far away from stocks or any type of investments. You two know absolutely nothing about the field.

    Lets take a few examples:

    1) You said Pandora was a buy when it was above $12... it is now at $8

    2) When Zynga was at $5, you said it was a potential 10 bagger (LOL).. its now at $2.30

    3) Since the pps of FB was in the 30's, you guys have repeatedly put out pump articles recommending a buy

    The only reason I could see anyone reading the garbage you put out is to do the opposite of what you say.

  • Report this Comment On November 04, 2012, at 1:56 AM, whyaduck1128 wrote:

    I own FB and want to own it for the usual reason--to make money. Bought at $20, have a sale price in mind, don't much give a rip about the company otherwise. It may be "social media", but it's not "social investing" for me.

  • Report this Comment On November 05, 2012, at 12:03 PM, cctx wrote:

    Forgot why I gave up on the Motley Fool and didn't remember why until I read this 'article' which is representive of most of the garbage published on this site. The opinions presented by the authors are essentially their personal wishes for FB to succeed without any regard to the other factors in play (such as the horrendous executive managment team at FB). My advice to novice investors would be to turn to reputable sources for investing information/recommendations. As for me I'll be back when I forget how cr@ppy this site is which may be a long, long, long time.

  • Report this Comment On November 05, 2012, at 3:45 PM, hilsonvalli wrote:

    MORE shilling of your premium report on this dog? Good grief. MF has fallen far from its salad days.

    How can MF with even a shred of conscience recommend a stock that has such a ridiculous valuation with hundreds of millions of shares coming off lock-up in the months ahead.

    Anything for a buck nowadays, eh, Fools?

  • Report this Comment On November 11, 2012, at 12:22 PM, Phaseiiia wrote:

    How are you two dumbfarks still even able to afford food and clothing? From all the horrid investment advice you are giving out, only reason is it must be on purpose.

    LOL, go click on "more articles" and see how many times they recommended to buy FB.

    The next "buy" you guys rec. im going all in short on it.

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