Why Equity Analysts Like Facebook

Wide-moat social media company seeing growth in users, engagement, and online advertising but say the stock is currently trading at fair value

Morningstar Equity Analysts 11 July, 2016 | 1:03PM

 

Ali Mogharabi: Facebook (FB) is the largest social network with more than 1.6 billion monthly active users. The growth in users and user engagement, along with the valuable data that they generate, make Facebook attractive to advertisers. The combination of these assets and continuing growth in online advertising bodes well for Facebook, as the firm generates strong revenue growth, remains cash flow positive, and profitable.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Facebook Inc A284.79 USD2.40

About Author

Morningstar Equity Analysts  Morningstar stock and fund analysts cover 2,000 mutual funds, 2,100 equities, and 300 exchange-traded funds.

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