Facebook: A Strong Buy

The idea that Facebook is overvalued is just insane.

by Rod D. Martin
May 25, 2012

Yes, Facebook as a "strong buy" probably seems counterintuitive, or perhaps a couple weeks out of date.

But that's exactly the point. If you're doing what everyone else is doing, you'll get the same results.

The idea that Facebook is overvalued is just insane. It's mass jealousy. It's a sick joke.

A week ago the stock debuted at $38. It got as high as $45. With LinkedIn's quick double on their minds, analysts at Sterne Agee and Morningstar had predicted far more.

It closed today at $31.91. My guess is it will get worse before it gets better. It's getting thrashed in the media. Summer is coming (the equivalent of "Winter is coming" for all you Game of Thrones fans). Nothing good will happen before Labor Day, and maybe not then.

But good things will happen. Very good things.