Even though millions use Facebook FB and it may appear to be a great company, that doesn't mean you should own it as an investor. Facebook will have to get very creative in trying to put ad's in front of users as peoples preferences shift to mobile and away from a PC.
Facebook's stock price has been crushed since it reported earnings for the first time as a public company last Friday. However even with the decline it is still richly valued with a Fwd P/E of 34.9 and a Price/Sales ratio of 12.6.
With over 900M registered users, how much farther can Facebook grow? We don't believe very much and until the company can figure out how to get more ads on mobile devices and get advertisers to pay for those ads, we would stay away from the stock.
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