Friday, September 14, 2012

Facebook (NASDAQ:FB) Stock Holds Out Prospects of Appreciation

Facebook Inc(NASDAQ:FB) still has its supporters among the investment management community, though the stock has lost half its value since its IPO in May.

Several mutual fund managers feel that despite the current weakness in the stock, it has long-term potential and it will rise again.

Facebook is on the portfolio of many mutual funds, several of who have substantial holdings in the company. In fact there are several investment managers who feel that those who missed out on investing in the IPO of the company should take the opportunity to investing in the company at the current levels.

Many of the funds managed by Morgan Stanley Investment Management have exposure to the company, according to Morningstar which tracks these statistics. According to data there are six funds managed by Morgan Stanley that have the Facebook stock among their top five holdings.

Is FB Ready To Hold Recent gains And Move Back To $25 Level? Find Out Here

Facebook was close to 6 percent of the portfolio of the investment manager's largest fund, Morgan Stanley Focus growth Fund.

Incidentally the investment bank Morgan Stanley was one of the main underwriters to the Facebook IPO.

Facebook's shares were offered at $38 a share but steadily lost ground over the next few sessions.

Its first reported quarterly results were disappointing as its revenue showed slowing growth pattern. Unlike other companies, The company also failed to provide any forward guidance nor were there any indication as to what the company would do to boost revenues.

More critically, with more of its subscribers migrating to mobile platforms to access its services, the company was found to be lagging in addressing this segment and monetising it.

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