Today, Andrew discusses a huge reason for investors to avoid Facebook. The tech company stumbled after a recent report showed a sag in usage numbers. Overall users fell 1% in the past six months, and in Facebook's 23 largest markets, 14 featured negative or flat usage numbers. But even more importantly, this could indicate negative long-term trends. With an unclear idea of how exactly to back its incredibly high valuation with actual profits, and continued criticism regarding its ad effectiveness, Facebook could easily see some tough times in the near future. Andrew continues to avoid the very risky stock.
For a good way to play the tech revolution, The Motley Fool has just released a free report on mobile named "The Next Trillion-Dollar Revolution" that details a hidden component play inside mobile phones that also is a market leader in the exploding Chinese market. Inside the report, we not only describe why the mobile revolution will dwarf any other technology revolution seen before it, but we also name the company at the forefront of the trend. Hundreds of thousands have requested access to previous reports, and you can access this new report today by clicking here -- it's free. Or to get the full scoop on the preeminent name in tech today, just click here to grab your copy of the Fool's brand new premium report on Apple that includes both the reasons to buy and the dowside risks that face the iEverything powerhouse.
The article 1 Huge Reason Investors Should Stay Away From Facebook originally appeared on Fool.com.
Andrew Tonner owns shares of Apple. You can follow Andrew and all his writing on Twitter at @AndrewTonner. The Motley Fool owns shares of Apple and Facebook. Motley Fool newsletter services recommend Apple. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.