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Why Facebook Is Poised to Keep Fading

Thursday - 3/28/2013, 9:35am  ET

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.

Facebook facts

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.

This article was originally published as Why Facebook Is Poised to Keep Fadingon Fool.com

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