FB Stock Still Soaring – Buy Facebook Before Next Breakout

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Facebook Inc. (FB) is one of those stocks that should constantly be on every investor’s radar, both as a measure of broad sentiment and because FB stock is one of the hottest tickets on Wall Street today.

FBAfter all, Facebook stock is up 14% year-to-date in 2015 vs. a slightly down market, up over 19% in the last year vs. 1% or so for the S&P 500 and up 240% since the beginning of 2013 vs. about 40% for the major indexes.

Right now, FB stock is in the middle of a pullback thanks to a bit of negativity after earnings and because of the current market downturn at large.

But investors who have been watching Facebook for some time and looking for a buying opportunity should see this pullback as their moment. The fundamentals of FB stock remain very strong, and the long-term prospects remain bright.

It all comes down to growth, really. Despite massive scale in both its user base (1.5 billion or so and counting) and ad sales (over $14 billion in advertising revenue annually), Facebook continues to move ahead and improve.

Admittedly, investors were a bit disappointed with the latest growth metrics after earnings. But that seems an overreaction considering double-digit top line improvement and revenue and profits that both topped Wall Street estimates.

I like Facebook a lot for the long haul thanks to its reach and advertising might. This pullback may be just the opportunity to buy in at a fair price, too.

Jeff Reeves is the editor of InvestorPlace.com and the author of The Frugal Investor’s Guide to Finding Great Stocks. Write him at editor@investorplace.com or follow him on Twitter via @JeffReevesIP. As of this writing, he did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2015/08/fb-stock-facebook-breakout/.

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