Facebook, Inc. (NASDAQ:FB)

CAPS Rating: 2 out of 5

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Player Avatar RAChurak (< 20) Submitted: 2/28/2013 7:09:43 AM : Underperform Start Price: $26.84 FB Score: -146.22

Facebook, it's the next big thing... That's what people were saying a year ago before their IPO. Investors soon found that having a lot of users doesn't automatically mean a profitable business. Yes, the userbase has grown exponentially, but the one thing that I don't think anyone is taking into account is that not everyone continues to use Facebook. Just because you have an account doesn't mean you use it. Facebook's customer base is extremely inflated and without a way to decisively take advantage of the amount of users this stock will continue to underperform versus the market.

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