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.
Facebook's lockup periods from its IPO are expiring. The selling pressure will probably push the stock price down, giving investors a great opportunity to buy shares in November. Here's why investors will want to own Facebook.
First, the network has been built. Facebook now has more than 1 billion users around the world -- and it's still growing! Facebook has become a platform. But unlike Yahoo! or AOL before it, Facebook's connections are much stronger.
Second, Facebook wants to open up its network to developers. Developers will be able to market their applications, as Zynga did with games, and improve the Facebook experience.
Lastly, Facebook gets mobile. Facebook updated its mobile interface, and it is seeing more users who are more engaged. And it will work with advertisers to create more targeted, more effective ads over time. Google changed the way businesses market their product online through search advertising. Facebook is changing the game again with social advertising. It's still in the early stages, but it offers a tremendous opportunity.
Investors will want to take advantage of the selling pressure as the lockup period expires.
If you're interested in ongoing coverage of Facebook, check out our newest premium research report. There is a lot more to this company than meets the eye, so you may want to read more about it. 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 and Google and has options on Facebook. Motley Fool newsletter services recommend Facebook, Google, and Yahoo!. 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.