Is It Too Late to Double Your Money on Facebook Stock?

Michael A. Robinson

Are there any Facebook Inc. (Nasdaq: FB) skeptics left out there?

I doubt it.

But even early this year, the social-networking giant still had plenty of naysayers on Wall Street.

And that was when – on Feb. 27 to be precise – I predicted that Facebook stock would double in value by 2018.

And the stock has gone on a huge rally since that day, when it was trading at just shy of $79.

FB recently closed at $106.50, giving those of you who picked it up at the time a 35.5% gain in little more than eight months.

If that doesn't sound like much to you, consider this. During that same period, the market-reflecting S&P 500 Index is down by 2.6%.

Of course, after a big run like that, you're likely wondering if there is any upside left.

Should you get out now? Is it too late to make your "Buy"?

This is what I think…

All in on Facebook Stock

The answer is "no."

No, you shouldn't sell your shares – and no, it's not too late to take a stake in Facebook.

In fact, I'm "doubling down" on my original prediction by raising my FB price target to $250.

I'm one of the few tech analysts who's stood by Facebook when others were slamming it. You may recall, back on March 7, 2014, when I noted that Facebook had become the laughingstock of the Nasdaq.

The company had just agreed to pick up the instant-messaging service WhatsApp for $19 billion. That five-year-old startup had just 55 employees and 2013 revenue of $20 million. And Wall Street, cable TV pundits, and late-night comedians hurled sarcasm at the Silicon Valley leader.

But here's what I said: "Facebook founder and CEO Mark Zuckerberg will have the last laugh here.

"And if you follow my recommendation… so will you."

Since then, the stock is up 58.6%, beating the S&P 500 more than fourfold.

In other words, my Facebook prediction wasn't just "bold" – it turned out to be pretty much on the money.

I believe Wall Street and the mainstream media failed to see what's really going at Facebook because they violated Rule No. 2 of Your Tech Wealth Blueprint. That rule says to "separate the signal from the noise."

In this case, the noise was a widely held belief that Facebook had limited upside because it was just a social site for teens and college students fooling around on their laptops.

Here's the signal: Facebook is nothing short of a mobile juggernaut – the firm is now an advertising and media cash machine.

Think about it – and then take a look around.

All those people fiddling with their phones – whether you're at the airport, the neighborhood playground, or strolling down the sidewalk – a whole bunch of them are on Facebook. Three of the top 10 mobile apps are owned by Zuckerberg's company.

When it comes to our smartphones, Facebook often is the Internet.

And after the company's recent breakout earnings in the third quarter proved this point, many in the investing community jumped on its bandwagon.

Convincing the Skeptics

Michael A. Robinson

About the Author

Browse Michael's articles | View Michael's research services

Michael A. Robinson is a 35-year Silicon Valley veteran and one of the top technology financial analysts working today. He regularly delivers winning trade recommendations to the Members of his monthly tech investing newsletter, Nova-X Report, and small-cap tech service, Radical Technology Profits. In the past two years alone, his subscribers have seen over 100 double- and triple-digit gains from his recommendations.

As a consultant, senior adviser, and board member for Silicon Valley venture capital firms, Michael enjoys privileged access to pioneering CEOs and high-profile industry insiders. In fact, he was one of five people involved in early meetings for the $160 billion "cloud" computing phenomenon. And he was there as Lee Iacocca and Roger Smith, the CEOs of Chrysler and GM, led the robotics revolution that saved the U.S. automotive industry.

In addition to being a regular guest and panelist on CNBC and Fox Business Network, Michael is also a Pulitzer Prize-nominated writer and reporter. His first book, "Overdrawn: The Bailout of American Savings" warned people about the coming financial collapse - years before "bailout" became a household word.

You can follow Michael's tech insight and product updates for free with his Strategic Tech Investor newsletter.

… Read full bio