Quote from syntrader:
Agree.
I got in at 20.5, planning on holding for a long time. It's not a trade.
This is not my typical way of thinking about an investment, but here's why I bought:
1) Although FB's user growth may be slowing, the money comes from ads. If they can get the right ads in front of the right people (they have a ton of user data), advertisers will gladly pay higher rates which can more than compensate for slowing user growth. (GOOG user growth has slowed, but their ads have such a high ROI that they can charge more than the other search engines - as long as FB does not start to lose a significant number of users, slowing user growth is not the main concern)
2) Living in the SF Bay area I know that there is a war for talent among tech co.s, and FB - even with its depressed stock - is still seen as an attractive place for top talent. If you know what RSUs are, you'll understand. FB has some big issues to tackle like better monetizing mobile ads, and if anyone can figure out a way to do it, it will be those guys. This is not a trade, I like to invest in co.s that combine innovative products with top talent in a niche industry (social media)
3) FB has a large moat around it, making it harder for a new social network to pass it. Yes, it could happen, but I don't think its likely. I've also owned GOOG and APPL for some similar reasons. Buy the leader in a growing industry.