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Is Facebook Among the Best Stocks to Invest in Now?

By Tim Beyers - May 15, 2013 at 6:30PM

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The social network isn’t as overvalued as some think.

The stock analysts at Barron's are anything but bullish on Facebook's ( FB -1.14% ) prospects. In the wake of the social network's most recent earnings report, they argue the stock is still worth no more than $25 a share and certainly not among the best stocks to invest in now.

We've seen this before. Barron's first published its valuation thesis in early February. The stock has badly lagged the S&P 500 since, and remains well off its much-hyped $40-a-share IPO price. Fears that Google will destroy the company appear to be alive and well, says Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova in the following video.

Yet they may also be overblown, Tim says. Facebook's mobile ad revenue surged 30% as big names such as Yahoo! also took steps to get more smartphone owners using its apps. Facebook's efforts with Home and other mobile initiatives are paying off.

Do you agree? Watch the video below to get Tim's full take, and then let us know whether you believe Facebook is among the best stocks to invest in now.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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Stocks Mentioned

Meta Platforms, Inc. Stock Quote
Meta Platforms, Inc.
FB
$306.84 (-1.14%) $-3.55
Alphabet Inc. Stock Quote
Alphabet Inc.
GOOGL
$2,840.03 (-0.68%) $-19.29
Apple Inc. Stock Quote
Apple Inc.
AAPL
$161.84 (-1.17%) $-1.92
LinkedIn Corporation Stock Quote
LinkedIn Corporation
LNKD.DL

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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