Why Facebook Is Poised to Keep Fading

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 and see what CAPS investors are saying about the stock right now.

Facebook facts

Headquarters (founded)

Menlo Park, Calif. (2004)

Market Cap

$62.2 billion

Industry

Internet software and services

Trailing-12-Month Revenue

$5.1 billion

Management

Founder/Chairman/CEO Mark Zuckerberg

CFO David Ebersman

Return on Equity (average, past 3 years)

0.6%

Cash/Debt

$9.6 billion / $2.4 billion

Competitors

Google

LinkedIn 

Twitter

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 40% of the 1,748 members who have rated Facebook believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those Fools, OklaBoston, kindly updated our community on the Facebook bear case:

Ended a red thumb on this a while ago when I thought it had bottomed. It's gone into another downtrend since then, insiders have been selling, and the valuation numbers are still absurd. So I'm resurrecting a pick I'm not sure I should ever have ended.

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.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.


Read/Post Comments (1) | Recommend This Article (2)

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 March 28, 2013, at 3:01 PM, amh7209 wrote:

    I am beginning to think the Mr Z is the antithesis of the late Mr J.

    I really wonder about Zuckerbergs ability to run this company.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2336258, ~/Articles/ArticleHandler.aspx, 10/21/2014 10:05:07 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement