Monday, May 21, 2012

Complete Info on the Facebook IPO

I don't have a buy or sell stock pick this week as I usally do. Stocks are oversold and look like they could continue lower with the US Dollar heading higher for the time being. Instead this week I've got information on the Facebook IPO from Morningstar.

Facebook's debut has unsurprisingly been one of the most talked about tech IPOs in years. The sheer size of the offering, the ubiquity of its service, and the lack of growth elsewhere in the market has led to a very high level of interest from investors of all stripes. But is this excitement warranted?

To find out, we've cut through the hype and taken a deep dive into the company's fundamentals and its competitive advantages. The bottom line for investors, according to Morningstar's Rick Summer, is that Facebook is a wonderful wide-moat business. But a choppy growth trajectory will likely send shares lower at some point providing investors an entry point at a much more attractive valuation.

Facebook a Future Advertising Force

Morningstar's Rick Summer sees Facebook and Google dominating the Internet advertising market as Facebook finds better ways to monetize its massive user base.

Facebook Poised for Massive Revenue, Cash Flow Growth

Facebook's trove of data on its users is its ace in the hole as it races to develop new revenue streams.

How Facebook Dug Its Wide Moat

Facebook has a wide economic moat based on its 'social graph,' communications layer, and competitively advantaged platform for brands, application developers, and advertisers.

Full Facebook Analyst Report

Facebook has a bright future, but revenue growth and profits may stumble in the near term.

First Day Pop Doesn't Spell Long-Term Success for IPOs

Recent tech IPOs have had great first days, but performance has lagged since then, says Morningstar's James Krapfel.

How Facebook Will Sneak Into Your ETFs

Facebook will be added to the holdings of several of these exchange-traded funds soon. Other funds, however, won't be graced with the presence of the social-networking giant for weeks--or months--to come.

4 Things Not to 'Like' About the Facebook IPO

Facebook has a solid business right now, but keep these weaknesses in mind before getting too excited.

Facebook's $100 Billion Valuation May Not Be Heroic

It will be a volatile ride, but Facebook's strong competitive advantages and growth opportunities could be the recipe for a hefty valuation, says Morningstar's Rick Summer.

Investing in Facebook: An IPO for Fools?

Investing in the Facebook IPO might not get you the returns you are looking for in the long run.

Huge Facebook IPO, Small Impact on Funds

Facebook's IPO will be huge for company insiders and early investors, but it probably won't be as much a boon for mutual fund investors.

Nygren: Taking a Pass on Facebook

There are plenty of other more attractively priced businesses in the market right now, says Oakmark's Bill Nygren.

Click here for a free trial of Morningstar Investment Research and in depth analysis of the Facebook IPO along with the rest of the equities markets.