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Buy Facebook Inc (FB) Now?

U.S. stocks are relatively flat this morning, with the S&P 500 up about a point and the narrower, price-weighted Dow Jones Industrial Average down 0.21% as of 10:05 a.m. EDT.

Facebook gets a big “like” from investors
Shares of Facebook Inc (NASDAQ:FB) have surged more than a quarter this morning, hitting $33.40 — a level not seen since the day following its calamitous IPO. Fueling the demand for the shares is yesterday afternoon’s upbeat earnings report.

Facebook Inc (NASDAQ:FB)’s “beats” on earnings and revenue are impressive, to be sure: During the second quarter, the social-networking company produced $0.19 of earnings per share against Wall Street expectations of $0.14, while revenue of $1.81 billion was well ahead of the $1.62 billion consensus estimate.

Facebook Inc. (FB)Beyond the fact that these numbers indicate solid growth, it’s the way in which the growth was achieved that must be cheering investors. Indeed, Facebook Inc (NASDAQ:FB) appears to be on top of its transition to mobile — this was a substantial concern that surfaced in the wake of the IPO, weighing heavily on the shares. Mobile revenue accounted for 41% of total advertising revenue in the second quarter, up from 30% in the previous quarter.

Should you buy Facebook Inc (NASDAQ:FB) now? From a short-term perspective, it doesn’t make sense to buy the shares after they’ve popped — indeed, the new information has been immediately factored into the price, and there is no advantage to be gained on a short-term basis in buying the shares now (traders, you’ve been warned!).

For a long-term, fundamental investor, this earnings report provides incremental information regarding the company’s most recent performance and its current position, both of which, in turn, enable you to fine-tune your outlook for the company’s expected future growth path.

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