Facebook Inc (FB) to Advertise on Your Newsfeed?

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A quick comparison of numbers should show who shows the best investment opportunity among these three companies. Google, Facebook, and Zynga’s P/E’s are 25.1, 2,500, and -12.2 respectively. These companies FCF yields are 5%, .6%, and -5.2%. Due to Zynga’s negative FCF yield is because the company currently shows a negative FCF. Facebook Inc (NASDAQ:FB) and Zynga are both new companies, but have seen revenue increase for three consecutive years. Google’s have increased for more than a decade.

The are many reasons I am not big on buying Zynga or Facebook. The biggest reason I don’t believe in buying Zynga is that they are dependent on companies such as Facebook to market their products. If, for some unknown reason, Facebook shut down tomorrow, a huge percentage of Zynga’s revenue, profit, and customers would disappear. Facebook Inc (NASDAQ:FB), although it holds more users than any other social media network, hasn’t done anything to distinguish itself from any other networks such as Google +.

The Foolish bottom line…

Google has become a force to be reckoned with. They are the largest search engine worldwide, they own YouTube, Google +, and one of the leading web browsers in Google Chrome. Obviously they are a major player in the mobile world with their Android OS as well. They have become a major player in several major industries, and show no reason of slowing down. At this point, Google seems to be a far better buy than either Facebook or Zynga.

The article Facebook to Advertise on Your Newsfeed? originally appeared on Fool.com and is written by Tyler Wofford.

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