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.

Why Investors Weren’t Impressed With Facebook Inc (FB)’s Results

But what about those expenses, you ask? At this stage in Facebook’s business life, not using its positive operating income and $2.38 billion in cash to invest in new technologies, people, and revenue opportunities would be a concern. And Facebook has several recent, or pending, introductions that should have mid-term investors feeling good.

By now, you’ve probably heard about Facebook’s new gift card, in addition to its Gifts service. Are these game-changers? No, but finding more ways to expand Facebook offerings, generate revenues, and engage users are positives in the long run. And let’s not forget what Zuckerberg called his “new pillar of our ecosystem” on Facebook’s recent conference call — its new Graph Search. That, too, will take time before it begins making an impact on Facebook’s bottom line, but that’s to be expected, not dismissed.

Perhaps the most immediate impact will be made by the 10 new games, all targeting the hardcore Call of Duty-type gamer crowd, expected later this year. The action-game industry offers a ton of potential; Call of Duty alone finished 2012 by surpassing $3 billion in sales. Facebook’s partnership with social-media game maker Zynga Inc (NASDAQ:ZNGA), with its Farmville and similar middle-of-the-road games, is fine, but action is where the revenue is. Keep a close eye on these new games as they roll out this year.

Now that 2012 is behind us, it’s time to look forward. And if you’re a mid-term investor in search of a solid growth opportunity, Facebook still looks pretty darn good.

The article Why Investors Weren’t Impressed With Facebook’s Results originally appeared on and is written by Tim Brugger.

Fool contributor Tim Brugger has no position in any stocks mentioned. The Motley Fool recommends and owns shares of and Facebook.

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

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.