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Why Facebook Inc (FB) Execs Are Ditching the Stock

Recently, the service surpassed Twitter to become the second most popular social media site. If membership numbers continue to multiply, Facebook may have more to worry about than executives selling off shares.

As Facebook kicks Graph Search into gear, analysts are wondering if the site has what it takes to make it as a profitable business. While the company is newer to the market than LinkedIn and Google Inc (NASDAQ:GOOG), the stock still hasn’t managed to catch on with investors. The problem with Facebook is that it seems to have no realistic plans to implement additional revenue streams.  Until it can come up with something that will move the needle, it is a speculative investment at best.

Foolish final thoughts

LinkedIn, on the other hand, is doing well at capitalizing on what it does best: helping people succeed in their chosen industry. As fun as it is to interact with the high school homecoming queen and Aunt Judy in Minnesota, LinkedIn helps people bring in money to pay bills. However, with shares falling recently, analysts are beginning to speculate that the company’s upward trend may be slowing.

Meanwhile, Google shareholders are excited about the possibility that the stock will reach $1,000 a share. With its social media model gaining ground on Facebook, investors may be rejoicing that price-point sooner rather than later.

Stephanie Faris has no position in any stocks mentioned. The Motley Fool recommends Facebook, Google, and LinkedIn. The Motley Fool owns shares of Facebook, Google, and LinkedIn. Stephanie is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article Why Facebook Execs Are Ditching the Stock originally appeared on Fool.com is written by Stephanie Faris.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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