Buy Facebook Inc (FB) Now?

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Indeed, this morning, the market is doing at least one of two things in bidding the shares up: First, it’s certainly raising its estimates of the company’s future cash flows, second, it may be lowering the risk (and, consequently, the discount rate) it associates with those cash flows. Nevertheless, I think that risk remains underappreciated: At $33.40, investors are valuing the shares at a whopping 51.3 times the estimate for the next 12 months’ earnings per share. Facebook Inc (NASDAQ:FB) is still a speculation, but if you’re interested in technology, there are lower-profile — and lower-risk — opportunities out there.

The article Should You Buy Facebook Now? originally appeared on Fool.com.

Fool contributor Alex Dumortier, CFA has no position in any stocks mentioned; you can follow him on LinkedIn. The Motley Fool recommends Facebook. The Motley Fool owns shares of Facebook.

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