Morningstar's Take on the Facebook IPO
We take a deep dive into one of the most anticipated offerings in years.
We take a deep dive into one of the most anticipated offerings in years.
Facebook's debut has unsurprisingly been one of the most talked about tech IPOs in years. The sheer size of the offering, the ubiquity of its service, and the lack of growth elsewhere in the market has led to a very high level of interest from investors of all stripes. But is this excitement warranted?
To find out, we've cut through the hype and taken a deep dive into the company's fundamentals and its competitive advantages. The bottom line for investors, according to Morningstar's Rick Summer, is that Facebook is a wonderful wide-moat business. But a choppy growth trajectory will likely send shares lower at some point providing investors an entry point at a much more attractive valuation.
Complete Coverage of the Facebook IPO
Facebook a Future Advertising Force Morningstar's Rick Summer sees Facebook and Google dominating the Internet advertising market as Facebook finds better ways to monetize its massive user base. (Video)
Facebook Poised for Massive Revenue, Cash Flow Growth
Facebook's trove of data on its users is its ace in the hole as it races to develop new revenue streams.
How Facebook Dug Its Wide Moat
Facebook has a wide economic moat based on its 'social graph,' communications layer, and competitively advantaged platform for brands, application developers, and advertisers.
Full Facebook Analyst Report
Facebook has a bright future, but revenue growth and profits may stumble in the near term.
First Day Pop Doesn't Spell Long-Term Success for IPOs
Recent tech IPOs have had great first days, but performance has lagged since then, says Morningstar's James Krapfel. (Video)
Previous Coverage
How Facebook Will Sneak Into Your ETFs
Facebook will be added to the holdings of several of these exchange-traded funds soon. Other funds, however, won't be graced with the presence of the social-networking giant for weeks--or months--to come.
4 Things Not to 'Like' About the Facebook IPO Facebook has a solid business right now, but keep these weaknesses in mind before getting too excited.
Facebook's $100 Billion Valuation May Not Be Heroic
It will be a volatile ride, but Facebook's strong competitive advantages and growth opportunities could be the recipe for a hefty valuation, says Morningstar's Rick Summer.
Investing in Facebook: An IPO for Fools?
Investing in the Facebook IPO might not get you the returns you are looking for in the long run.
Huge Facebook IPO, Small Impact on Funds
Facebook's IPO will be huge for company insiders and early investors, but it probably won't be as much a boon for mutual fund investors.
Nygren: Taking a Pass on Facebook
There are plenty of other more attractively priced businesses in the market right now, says Oakmark's Bill Nygren.
Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
We’d like to share more about how we work and what drives our day-to-day business.
We sell different types of products and services to both investment professionals
and individual investors. These products and services are usually sold through
license agreements or subscriptions. Our investment management business generates
asset-based fees, which are calculated as a percentage of assets under management.
We also sell both admissions and sponsorship packages for our investment conferences
and advertising on our websites and newsletters.
How we use your information depends on the product and service that you use and your relationship with us. We may use it to:
To learn more about how we handle and protect your data, visit our privacy center.
Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.
To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.
Read our editorial policy to learn more about our process.