Billionaire Investor Says Facebook’s Days Are Numbered
By: Rex Moore
Facebook has racked up amazing, life-changing gains since it went public just six short years ago. Anyone who got in during the dog days after the IPO could have could have made 10 times their original investment!
(Missing that early price is one of my biggest regrets as an investor.)
But if you saw in the news what billionaire investor George Soros just said about social media giants, you may very well be looking for the next Facebook at this point — one with all the growth potential Facebook had in its early days.
And we may have found just such an obscure stock… more on that in a moment. (And its CEO is making a $429 million bet on the stock!)
But first, let’s talk about Soros. He just told everyone at the World Economic Forum in Davos, Switzerland that Facebook’s and other social media giants "days are numbered." He says the company’s near-stranglehold on social media will soon be attacked by regulators… and that its growth will stop in less than three years because it will "run out of people to convert.”
Given Soros’ reputation as one of the world’s top hedge fund managers, he really has me thinking about what to do with my own Facebook shares. The company is an absolute powerhouse in the ever-growing advertising space, but if Soros is right and its own growth stops… yikes.
Luckily two great growth investors are agreeing on a possible “new Facebook."
First, renowned investor Tom Gardner has identified a stock that he thinks resembles Facebook in its early days.
And it’s growing at a torrid pace – profit grew 42% over the prior year quarter alone!
But there’s something even more unique about Tom’s latest buy signal that has the investing community bustling.
Tom’s brother David – a legendary investor who picked Amazon at $3.19! – has gone on record also recommending investors buy this same exact stock.
Some investors have come to call this signal a “total conviction” buy sign – and it’s an incredibly rare occurrence. Over 17 years of guiding investors, Tom and David have only ever formally agreed on recommending 21 stocks.
And when they have, the results have been spectacular:
- Netflix, which Tom agreed with David on in June of 2007, is a “Total Conviction” pick up 11,716%.
- Tesla, which Tom agreed with David on in November of 2012, is up 843%.
In fact, across the 21 stocks Tom and David Gardner have agreed on ... the average return for each stock is an astounding 509% … crushing the S&P 500 by almost 6x!
But here’s the real kicker about this “Total Conviction” buy…
This tiny little internet company is 209 times smaller than the size of Facebook.
Yet, the Gardners think it has a jaw-dropping market opportunity that could be bigger than 2016 total sales of Apple, Amazon, Facebook, and Google – combined!
This small cap stock has already banked $429 million for its young CEO.
And this obscure company has been raking in cash from deals with industry titans … with almost no fanfare from Wall Street.
And every good investor knows the big money is made by finding little-known companies with big growth prospects – and getting in early.
So if Soros is right, and Facebook’s day are indeed numbered… then perhaps this small company that Tom says resembles an early Facebook will fit the bill.
The Motley Fool has recommended this stock four times already in the past year, and each time it’s gone on to crush the market.
But we think that’s just the beginning.
At such a small size we’re confident this stock has PLENTY of room to go.
However please note – unfortunately as of now, you risk missing out on this “Total Conviction” stock – because Tom will only reveal this stock recommendation to members of the Stock Advisor community.
But while you can't go back in time to lock in the 509% returns you'd have by purchasing all of the stocks David and Tom have agreed on ... I believe I'm offering the next best thing.
For details on how you can join Stock Advisor – and learn the name of this electrifying company – simply enter your email address below.
Don’t give yourself an excuse to sit on the sidelines, saying “maybe next time,” while David and Tom’s pick that could be the next grand slam stock whizzes by.
Simply enter your email address below for immediate access to our report today.
Returns as of April 19, 2018. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Rex Moore owns shares of Alphabet (A shares) and Facebook. The Motley Fool owns shares of and recommends Alphabet (A shares), Amazon, Apple, Facebook, Netflix, and Tesla. The Motley Fool has the following options: long January 2020 $150 calls on Apple, short January 2020 $155 calls on Apple, short March 2018 $200 calls on Facebook, and long March 2018 $170 puts on Facebook. The Motley Fool has a disclosure policy.