Why You Should Buy Facebook

After its initial public offering proved to be overvalued, shares of Facebook (NASDAQ: FB  ) fell dramatically, but at these prices they look a lot more reasonable. In this video, Motley Fool tech analyst Andrew Tonner gives investors a few things to consider when thinking about buying into Facebook. He talks about its recent advertising refocus away from display ads and toward sponsored ads within a person's Facebook feed, which is finally helping the company capitalize on the burgeoning mobile industry, and highlights the world's many emerging markets where Internet penetration still has a huge distance to run, which could mean millions of new Facebook users.

After the world's most hyped IPO turned out to be a dunce, most investors probably don't even want to think about shares of Facebook. But there are things every investor needs to know about this company. We've outlined them in our newest premium research report. There's a lot more to Facebook than meets the eye, so read up on whether there is anything to "like" about it today, and we'll tell you whether we think Facebook deserves a place in your portfolio. Access your report by clicking here.


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  • Report this Comment On January 05, 2013, at 12:08 PM, Raphael1990 wrote:

    I am not seeing any new reasons to buy FB right here. You are spending 28 USD and get a package full of "opportunities" and "huge potential" which is in itself not a bad investment strategy, but when the price of a stock in relation to its potential is so high like in this case, it burns your money in the long run(even though some of these stocks become multibaggers). Check the odds and the respective payoffs and make sure your EV is positive by a significant amount before you play a game.

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