Why Facebook is not a buy: Mark Zuckerberg has no answers for the questions that matter most

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Why Facebook is not a buy: Mark Zuckerberg has no answers for the questions that matter most
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Facebook posted second-quarter earnings that, from a financial perspective, show 'everything is working right now,' according to tech investor Gene Munster of Loup Ventures. But Munster said impressive Facebook growth is almost irrelevant if Mark Zuckerberg and Sheryl Sandberg can't address the unknowns related to privacy and regulation.

Facebook user growth and revenue growth in the second quarter were strong and show how resilient the social media giant remains while it is under attack.

That's impressive, but not nearly enough for longtime tech analyst Gene Munster, now managing partner of tech investing firm Loup Ventures, to consider the stock a buy. Munster said investors cannot expect any clear answers about government regulation for at least six months. That is a difficult scenario in which to favor a stock.He said any potential resolution can cause some level of pain to Facebook's ability to monetize users.

Munster said those headwinds are part of the reason why Facebook guided Wall Street to slowing of revenue growth in the final two quarters of 2019.

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