Facebook Inc (FB): Face the Facts and Invest in This Company

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Professional competitor

LinkedIn Corp (NYSE:LNKD) is focused on connecting the world’s professionals rather than being a website for social interactions. It is the world’s largest professional network with over 200 million active users in more than 200 countries. The company has been on a tear lately, gaining over 56% year-to-date.

Facebook supports professional networking applications on its website, but I do not think any of them will be able to rival that of LinkedIn. I believe the two companies are differentiated enough to continue taking share in this market. Facebook Inc (NASDAQ:FB) will continue to grow as the world’s social network and LinkedIn Corp (NYSE:LNKD) will do the same as the world’s professional network.

Game over Zynga Inc (NASDAQ:ZNGA)

For quite a while, Zynga Inc (NASDAQ:ZNGA) was successful in creating games that people loved to play. Farmville was once the most popular game around with over 82 million active users per month through Facebook. Currently, Zynga claims to have over 292 million average monthly users, but this may decline sharply in April.

Back in November, Facebook Inc (NASDAQ:FB) amended the agreement it had with Zynga to bring the relationship in-line with other gaming providers. The change meant Zynga would no longer have the ability to promote its platform on Facebook. This is terrible for Zynga because it is estimated that 80% of its revenue comes from Facebook users. The change officially took place on Mar. 31 and could send Zynga tumbling for the rest of the year.

The Foolish bottom line

Facebook Inc (NASDAQ:FB) is very young and has the ability to grow into one of the most valuable companies in the world. With over 1 billion active users, advertising revenue on the rise, and the underperformance year-to-date, I believe now is the perfect time to buy. This is a long-term investment, so do not be deterred if it does not rise immediately.

The article Face the Facts and Invest in This Company originally appeared on Fool.com and is written by Joseph Solitro.

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