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Facebook Still Looks Attractive

Even after the pop in the wide-moat firm's shares, we still think investors are being presented with an appealing entry point.


Facebook shares rose this morning after the firm reported better than expected first-quarter results, while posting growth in daily and monthly active users, which we think is indicative that the firm's all-important network effect, a key source of its wide economic moat, is intact.

The results also provide some support for our view that the firm can regain user trust and weather the Cambridge Analytica and overall data privacy issues it is currently facing. We don't expect a significant long-term headwind to Facebook's platform, operations, or wide-moat rating.

Ali Mogharabi does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.