Apple Inc. (AAPL), Google Inc (GOOG): Facebook Inc (FB) Management Deserves Kudos

Unfortunately both of these potential growth drivers remain uncertainties — just as mobile monetization was an uncertainty one year ago. Also similar to the consensus one year ago, growth (in general) seems inevitable, but once again that potential growth is priced into the stock.

Sure, these new growth drivers could surprise investors just like mobile monetization surprised investors over the last 12 months. And that’s likely what investors will need for today’s valuation to provide meaningful returns over the long term. But that’s just a possibility.

So, congratulations to the shareholders that held from lows below $20 to today’s high above $40. The underlying business progress is certainly deserving of the run-up. But this run-up has unfortunately made buying Facebook stock, once again, a difficult decision.

The key difference
But here is where investing gets interesting. Here is where traders and Foolish investors part ways.

Even though Facebook Inc (NASDAQ:FB) seems fairly valued today — just like it did to many investors when mobile monetization was nothing but a wishful uncertainty — today Facebook has proven itself. Zuckerberg and Co. have shown they possess the skill necessary to add business value, and add it quickly.

For this reason, even though the stock is fairly valued, it may be worth considering buying Facebook stock in small quantities simply because the management team has shown it can execute. The company already boasted enduring characteristics given its powerful network effect. Now it boasts execution, too.

Sure, valuation matters, and that’s why I say “in small quantities.” But a fairly valued, excellent business with proven a management team sounds like a stock an investor could buy and happily hold for decades, giving management an opportunity to provide some upside surprise.

The article Facebook Management Deserves Kudos originally appeared on Fool.com and is written by Daniel Sparks.

Fool contributor Daniel Sparks has no position in any stocks mentioned. The Motley Fool recommends Facebook. The Motley Fool owns shares of Facebook.

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