Is Facebook Overvalued Again?

It's been an amazing summer for Facebook (NASDAQ: FB  ) investors. In the wake of its earnings blowout, the social networking stock exploded in July, rising nearly 50% in just the last month alone and surpassing the $38 level where the company made its public market debut last year. And unlike its IPO valuation, this recent run-up certainly seems more justified. Why? Because Facebook's management has executed beautifully on most of its key strategic initiatives, most notably building out its mobile advertising platform. In this video, Fool contributor Andrew Tonner argues that while there's a lot to like with Facebook, those thinking of buying today still might not be getting their money's worth at today's prices.

Much of our digital and technological lives are almost entirely shaped by just a handful of companies like Facebook. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.


Read/Post Comments (1) | Recommend This Article (6)

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 August 05, 2013, at 8:37 PM, Galway21 wrote:

    I think Andrew Tonner is bias, as he must be loaded up on Apple share and is afraid, if he gives a fair evaluation to FB his reader will fly the coup from Apple to FB. How can Apple be as fair a price @ over $ 400 a share as FB at over $35 a share?? If I had invested as many dollars in FB as just 100 of Apple I would not loose my shirt..I think he should stop evaluating FB while he is trying to get back to $700 in Apple, That is this fools 2 cents

    Martin

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: 2579033, ~/Articles/ArticleHandler.aspx, 12/21/2014 2:03:51 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