Why Facebook Is Poised to Keep Fading

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, social networking giant Facebook has received the dreaded one-star ranking.

With that in mind, let's take a closer look at Facebook and see what CAPS investors are saying about the stock right now.

Facebookfacts

Headquarters (founded)

Menlo Park, Calif. (2004)

Market Cap

$62.2 billion

Industry

Internet software and services

Trailing-12-Month Revenue

$5.1 billion

Management

Founder/Chairman/CEO Mark Zuckerberg

CFO David Ebersman

Return on Equity (average, past 3 years)

0.6%

Cash/Debt

$9.6 billion / $2.4 billion

Competitors

Google

LinkedIn 

Twitter


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 40% of the 1,748 members who have rated Facebook believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those Fools, OklaBoston, kindly updated our community on the Facebook bear case:

Ended a red thumb on this a while ago when I thought it had bottomed. It's gone into another downtrend since then, insiders have been selling, and the valuation numbers are still absurd. So I'm resurrecting a pick I'm not sure I should ever have ended.

After the world's most hyped IPO turned out to be a dunce, most investors probably don't even want to think about shares of Facebook. But there are things every investor needs to know about this company. We've outlined them in our newest premium research report. There's a lot more to Facebook than meets the eye, so read up on whether there is anything to "like" about it today, and we'll tell you whether we think Facebook deserves a place in your portfolio. Access your report by clicking here.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

The article Why Facebook Is Poised to Keep Fading originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Facebook, Google, and LinkedIn. The Motley Fool owns shares of Facebook, Google, and LinkedIn. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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