3 reasons to buy Facebook


The following video is part of our “Motley Fool Conversations” series, in which analyst John Reeves and advisor David Meier discuss topics across the investing world.

Despite some recent volatility in Facebook‘s (NYSE: FB) stock, John and David feel there are three solid reasons to pick up shares in the social-networking giant. First, everyone seems sure that Facebook’s revenue growth is slowing down, that mobile is a disaster, and that more companies like General Motors will stop advertising with them. All that anxiety is keeping the share price down.

Second, people are underestimating Facebook’s hacker culture. Like the folks at Google (Nasdaq: GOOG), John and David think it is being underestimated. Lastly, Facebook is going after big opportunities in advertising, such as installing a “Want” button, which would improve ad targeting, and creating an “Ad Exchange.” Better data and more users will hurt Microsoft‘s (Nasdaq: MSFT) Bing and Yahoo! (Nasdaq: YHOO).

John and David own shares of Facebook, and have been buying more for those very reasons stated above. They believe many people can’t look beyond the next six months to see that Facebook is building itself into a powerhouse.

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The Motley Fools purpose is to help the world invest, better. Take Stock is The Motley Fool’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Click here now to request your free subscription, whilst it’s still available. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

A version of this article, written by John Reeves & David Meier, originally appeared on fool.com

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