Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Facebook Inc. (FB): Buy Proposition, Or Just a ‘Head Fake’?

Facebook Inc. (NASDAQ:FB), after dipping to all-time lows earlier this month, has seen an impressive rally in the week or so since CEO Mark Zuckerberg expressed optimism and promising ideas for generating revenue – not the least of which was the concept of developing an internal search engine to help users find items within Facebook that Google Inc. (NASDAQ:GOOG) just can’t reach. After dipping below $18 a share, the stock has rallied to open Monday at $22 and has been trending upward despite the looming specter of more lockup expirations in the coming weeks, which likely will float more shares into the market.

Facebook Inc (NASDAQ:FB)

Although Zuckerberg did not report anything concrete in terms of new services or revenue-generators, the hope and optimism he expressed – as well as his humility in admitting mistakes during his Q-and-A session at a TechCrunch conference – has seemed to convince some analysts and rating companies of late, as Capstone Monday morning affirmed its “buy” rating on Facekbook Inc. (NASDAQ:FB) stock in a research note, posting a $26 price target. Topeka Capital posted a “buy” rating last week, listing a $36 price target, while Oppenheimer listed Facebook as “outperform” and JPMorgan Chase posted an “overweight” on the stock last week in their respective research notes.

While many seem to be jumping on the Facebook Inc. (NASDAQ:FB) bandwagon, there are others who are a bit more pragmatic as to buy into all of the talk. One commentator posted his opinion that without any hard numbers to back up the talk, he advises not jumping into Facebook stock before its next earnings report, slated for release in October. Based on the last earning report, this investor doesn’t seem to have much stock in the Facebook stock, citing more that the rise in Facebook Inc. (NASDAQ:FB) stock is tied to the tech industry in general moving up, as Google Inc. (NASDAQ:GOOG), Apple Inc. (NASDAQ:AAPL) and Microsoft Corporation (NASDAQ:MSFT) have all seen their stock prices rise.

Whether one buys into the talk or is skeptical of the numbers, any positive momentum is welcomed by investors in Facebook Inc. (NASDAQ:FB) stock, like hedge-fund manager George Soros of Soros Fund Management.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.