3 Reasons You Should Buy Facebook

Updated

The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics relating to their 10-Bagger portfolio.

Facebook reported earnings, and the market wasn't pleased, driving the stock price down. David came away with three reasons why investors should consider buying the stock. The first is Facebook's reach. It now has 955 million monthly active users. That is unmatched and powerful.This is a big reason why Starbucks uses Facebook to contribute to its experience and why Zynga has made social gaming a viable category. The second is Facebook is building a platform for developers: The more great content available for users, the stronger the lock-in. The last reason is integration. We are all social creatures. We watch movies on Netflix based on recommendations just like we use sites like TripAdvisor to help plan vacations. Facebook is taking social integration to the next level. And if we look past what the company might do in three months to what it could possibly do over the next three years, Facebook becomes a very compelling investment opportunity today.

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The article 3 Reasons You Should Buy Facebook originally appeared on Fool.com.

David Meier has no positions in the stocks mentioned above. John Reeves has no positions in the stocks mentioned above. The Motley Fool owns shares of Facebook, Netflix, Starbucks, and TripAdvisor. Motley Fool newsletter services recommend Facebook, Netflix, Starbucks, and TripAdvisor . 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.

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