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Why Equity Analysts Like Facebook

Wide-moat social media company seeing growth in users, engagement, and online advertising but say the stock is currently trading at fair value


Ali Mogharabi: Facebook (FB) is the largest social network with more than 1.6 billion monthly active users. The growth in users and user engagement, along with the valuable data that they generate, make Facebook attractive to advertisers. The combination of these assets and continuing growth in online advertising bodes well for Facebook, as the firm generates strong revenue growth, remains cash flow positive, and profitable.

Ali Mogharabi does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.