Facebook’s Youth Advantage Explained

Teens may like Twitter more than they did a year ago, but they still love Facebook (NASDAQ: FB  ) . New research from the Pew Research Center and Harvard's Berkman Center shows that 94% have a page and 81% say Facebook is the social network they use most frequently.

Twitter's influence is clearly growing. Nearly a quarter of teens make use of the microblogger, up from 16% in 2011. But that's still orders of magnitude less than what Facebook serves. So long as younger users continue to prefer Mark Zuckerberg's creation, the more attractive it is as an investment, says Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova in the following video.

What attracts teens to Facebook is, in many ways, reminiscent of what attracts business users to LinkedIn, Tim says. Both networks make it easy to organize into groups built around common interests, and teens are a cliquish sort.

They also possess an inordinate amount of disposable income. In appealing to teens, Facebook is positioning itself to sell more profitable ads and deliver the big gains in per-user revenue investors have long been hoping for. It's an all or nothing bet that, judging by the research, is working out well so far.

Do you agree? Please watch the video to get Tim's full take, and then let us know whether you would buy, sell, or short Facebook stock at current prices.

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