The debate rages about whether facebook is hype or the big winning stock of this decade. Whether it is a whole new form of communication that is changing the world or just a fad. The debate rages whether its earnings and revenue growth can appease Wall Street or if they have even begun to monetize their traffic flow. Here are the ten reasons I believe it is highly probable that Facebook will turn into a monster stock.

  1. I believe Facebook is more than just a web site or a social networking tool it is a new form of communication in the same line as the telegraph, radio, telephone, television, etc. We know how well those mediums were monetized.

  2. Facebook is the winner of the social media website wars. MySpace and Friendster lost, Facebook is not a first mover into this space they are the winner.

  3. Facebook’s advertising model is much like Google’s Adsense with linking advertisement to people’s interests, only facebook has far more information on specific customers than Google could ever dream of.

  4. I do not think the fear should be on Facebook worrying about someone beating them by innovating, I instead believe that others should worry about face book integrating and beating its competition. Google failed miserably with Google+ but Facebook could succeed with an integrated search engine in their site.

  5. People think Twitter is Facebook’s competition but I believe they are two different genre’s one is about people that know each other connecting the other is about the sharing of raw information.

  6. Mark Zuckerberg has been on a near perfect winning streak since 2004 why bet against him? The odds are not in our favor.

  7. If Zuckerberg can start from scratch and create one of the most visited websites in the world in his dorm room on a shoestring budget what can he do with one of  the top web sites in the world and billions in cash?

  8. Zuckerberg is very pragmatic and has played one game up to this point, now that he is running a public company he will play the new game of earnings expectations.

  9. This is not a bubble stock, this company creates billions in earnings, its stock price will be set based on its potential for growth.

  10. Facebook has created an impregnable hedge with its 900 million users, it is no easy feat to try to get 900 million people to move to a new site. We know this becasue Google all ready tried with all its brand power, technology, and money behind it and failed miserably.

(But of course I will only be risking 1% of my working capital while trading facebook and I will trade the chart and trend not my opinions and I will cut my losses if I am proven wrong.)