Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, social networking giant Facebook (FB 2.33%) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at Facebook and see what CAPS investors are saying about the stock right now.
Facebook facts
|
Headquarters (founded) |
Menlo Park, Calif. (2004) |
|
Market Cap |
$66.8 billion |
|
Industry |
Internet software and services |
|
Trailing-12-Month Revenue |
$4.6 billion |
|
Management |
Founder/Chairman/CEO Mark Zuckerberg CFO David Ebersman |
|
Trailing-12-Month Operating Margin |
12.1% |
|
Cash/Debt |
$10.5 billion / $902.0 million |
|
Competitors |
Microsoft |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 43% of the 1,635 members who have rated Facebook believe the stock will underperform the S&P 500 going forward.
Just last week, one of those Fools, All-Star MKArch, succinctly summed up the Facebook bear case for our community:
Although not quite as insanely priced as IPO day, Mr. Market is giving me another shot at red thumbing [Facebook]. ... When you get down to it, Facebook may be a great service but its business of selling banner ads no one ever looks at is mediocre at best. I ain't buying mining the useless blather people put on their pages for useful data is going to amount to a substantially better business. At their current market cap of $66.7B, something like 14X revenues, they need a whole new killer business that [no one] knows about just to justify their current market cap.
Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.
