Facebook Inc (FB), Google Inc (GOOG): Which Advertisement Giant Will Win in Mobile?

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In its recent earnings report, the company managed to beat earnings estimates, but came slightly behind on revenues.

Google Inc (NASDAQ:GOOG) may have surpassed Yahoo! Inc. (NASDAQ:YHOO) in display ads, but Yahoo! is headed in the right direction and will challenge this dominance. At a forward P/E of 16, Yahoo! Inc. (NASDAQ:YHOO) is the best bargain in this space, especially if we account for the value of its investments in Chinese search site AliBaba.

Conclusion

Mobile monetization is the key to future growth of leading players in this industry. Facebook has shown investors its true mobile potential by churning out a stellar quarter. The company also has the ability to improve its online video services and seriously challenge YouTube’s display revenues.

Facebook Inc (NASDAQ:FB) is currently trading at a forward P/E of 32, and 15% below its mean sell-side target price. The company has a 5-year average revenue growth of 100%, which demands further multiple expansion and an increase in share price. The discussion shows that Facebook is the best long-term investment in the internet advertisement industry, and a long-term buy.

The article Which Advertisement Giant Will Win in Mobile? originally appeared on Fool.com is written by Mohsin Saeed.

Mohsin Saeed has no position in any stocks mentioned. The Motley Fool recommends Facebook and Google. The Motley Fool owns shares of Facebook and Google. Mohsin is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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