The Things That You Must Know As An Investor About Facebook Inc. (NASDAQ:FB)


Dallas, Texas 04/07/2014 (FINANCIALSTRENDS) – ?? The selling of the stocks by the investors is more driven by the broader concerns they have about the market. The valuation that the trend setting stocks have received as well as Facebook’s current acquisitions has resulted in a lot of speculation about the stock. There are various questions that come to mind, for example “Is the stock still worth buying?” or “Is there anything to really worry about?”

Facebook Inc. (NASDAQ:FB) an overvalued stock?

Well the answer could be affirmative. Facebook definitely is an overvalued stock when compared with the peer group and it looks expensive as well. If the investors look at the stocks like that of LinkedIn and Twitter then surely FB stock looks a lot more costly. Though there are factors that support the pricing of this stock. It is not only a profit yielding stock with profit margins of 76% but also sustainable. Facebook Inc. (NASDAQ:FB)  can sustain the pressure of the expectations that the markets have from this stock. Facebook is the inventor of generating money through a social network site at such a large-scale. There is no other stock that investors can refer to while studying Facebook’s trend.

Dicey acquisitions by Facebook Inc. (NASDAQ:FB)

Recently, the social network giant announced its decision of acquiring WhatsApp which is a popular messaging service application. The application’s worth is estimated to be having revenue of mind-boggling $30billion. The deal between Facebook Inc. (NASDAQ:FB) and WhatsApp was valued at $19billion. The other surprise came early this week when Facebook announced that it will acquire virtual reality goggles maker Oculus VR. This deal is settled at $2 billion.