The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics around the investing world.
There's still plenty of negativity surrounding Facebook, even though the company has so many options to grow going forward. That's why John and David will be buying a few more shares for their real-money portfolio. Over the past 12 months, Facebook generated $4.3 billion in revenue and more than $1.7 billion in operating cash flow, mainly from advertising. But the social-media giant has lots of initiatives that could prove even more valuable over time. Mobile, for example, is still in its infancy. But companies like Pandora and TripAdvisor continue to use their data to drive their mobile experiences forward, much the same way Facebook will do over time. Lots of people are trying to figure out if Facebook is going to be the next Google or the next Yahoo! John and Dave think it's better to simply focus on what Facebook is doing, and all of the options it has. The current revenue stream is valuable, but those options may be worth more down the road.
Facebook has been a very disappointing stock for investors so far. But there are many different factors to consider with this company, and its fortunes could turn around in the future. We've taken a closer look at Facebook in our newest premium research report. There is a lot more to this company than meets the eye, so investors may want to consider our deep dive on the company. You may learn whether or not Facebook deserves a place in your portfolio. Access your report by clicking here.
David Meier has no positions in the stocks mentioned above. John Reeves owns shares of Google. The Motley Fool owns shares of Facebook, Google, and TripAdvisor and has options on Facebook. Motley Fool newsletter services recommend Facebook, Google, and TripAdvisor . Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.