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By Jason Stipp and Jeremy Glaser | 11-05-2015 04:00 PM

Friday Five: M&A Mania Continues

Activision, Expedia, and Visa each announced acquisitions this week, while Facebook had a great quarter and Tesla's stock popped despite an earnings disappointment.

Jason Stipp: I'm Jason Stipp for Morningstar. Welcome to the Friday Five--Morningstar's take on five stories in the market this week. Joining me with the Friday Five is Morningstar markets editor Jeremy Glaser.

Jeremy, thanks for being here.

Jeremy Glaser: You're welcome, Jason.

Stipp: It was another big week of earnings and M&A news. Let's start with Facebook (FB) earnings. They had a really good quarter in contrast to Twitter (TWTR). What were the drivers?

Glaser: They had a great quarter, and it really was driven by mobile. Facebook is really dominating this mobile-advertising game right now, which is becoming incredibly important. It's growing very quickly. Users are spending a ton of time on Facebook. They are spending a ton of time on Instagram and WhatsApp. Facebook has done a great job of monetizing those views, particularly on the Facebook app, but increasingly doing so in Instagram and they haven't even started on WhatsApp yet. So, that shows that--yes--they are seeing a lot of growth now, but there's also room for even more growth given how much time people are spending with all of their properties.

Unfortunately for investors, this is very much priced in right now. The shares have a lot of this growth already baked in, so right now doesn't look like a very compelling entry point for Facebook. But looking over Facebook's history, there do seem to be times when the shares have fallen out of favor, where people worried about maybe the investments that the company is making or worried about various things that led to a sell-off and led to better entry points. So, I think that investors with a long-term time horizon really can be patient and wait for that pullback. That would be the time to take a close look at this very high-quality wide-moat name.

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