This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Facebook Worth the Risk Under $25

NEW YORK ( TheStreet) -- Facebook (FB - Get Report) got a bad wrap after its notorious debut. The company hit a high of $45 a share shortly after going public and it was all down hill from there -- but that was May last year. Today, the stock is trading around $25.74 and analysts give the company a mean one-year target estimate of $33.44, according to Yahoo! Finance.

Now that would be a fair return -- almost 30% -- if it makes the mark.

While there are plenty of reasons to doubt whether Facebook has what it takes to recover some of the ground it has lost, I think the company is worth the investment, if you can buy in under its 200-day moving average of $25.20 a share, that is, and are willing to hold the position at least one year.

Critics may point out that the stock is down considerably from its IPO last summer, but I say, since when is an investment determined by its old share price? I just want to know if I can make money off of it now. And, that is exactly the case with Facebook.

Moreover, while so many nay-sayers have been focusing on Facebook's post-IPO fall from grace, the company has been making some big changes.

First and foremost, Facebook has some major opportunities, simply because of the volume of data it collects on its billion plus users. Google (GOOG) may be able to make estimates about your demographics, based on what you search for. (See what Google says your demographics are here.) However, it isn't always accurate.

Mine says I am a white male over 50 who speaks Japanese, but I am a woman in my 30's who speaks high school French and is learning Spanish -- more than a little off. Facebook, however, knows how old I am, knows I am a woman and knows which languages I speak. It remembers my birthday.

And, what I don't specifically tell Facebook, it wouldn't be that difficult to infer.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
FB $119.22 1.20%
AAPL $92.29 -1.00%
GOOG $708.29 0.98%
TSLA $215.67 2.00%
YHOO $37.09 0.41%


Chart of I:DJI
DOW 17,689.82 +29.11 0.16%
S&P 500 2,049.53 -1.10 -0.05%
NASDAQ 4,708.3390 -8.7550 -0.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs