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Is Facebook One of the Best Companies in America?

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In partnership withGlassdoor, our investment analysts are taking a closer look at some of the most popular companies in Glassdoor's career community.

As the world's largest social network, Facebook has arguably been the most important trendsetter for the nascent category. As the forerunner, Facebook has handled this pressure expertly. While the company has made a few mistakes along the way, the social network has also set the bar exceptionally high in some of the most crucial areas. This is particularly clear when you consider Facebook from the perspective of its four most important stakeholders: customers, employees, investors, and the world at large.

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FB data by YCharts .

But is there still potential for shareholders to earn market-beating returns in the years to come? For investors, this question matters the most.

While the rosy and optimistic valuation that Facebook stock trades at today is often eyed dubiously, the durability of the business and Zuckerberg's excellent leadership so far show clearly why the stock deserves an exceptional premium. Plus, Facebook's monstrous revenue and earnings growth in the last year quickly provide meaningful perspective for the stock's wild price-to-earnings ratio of about 81. In Facebook's second quarter, net income was up 147% from the year-ago quarter, hitting $562 million. Facebook's second-quarter revenue of $2.91 billion was up 61% from the year-ago quarter.

Living up to current market expectations will require Facebook to continue to take advantage of key growth opportunities. The company's primary opportunity to rapidly grow its business in the coming years remains the evolving and fast-growing mobile environment. Fortunately, Facebook has proven it can tackle this opportunity head-on. Consider, for instance, that its mobile advertising revenue in the second quarter reached 62% of total revenue, up from 41% in the second quarter of 2013 and from 0% two years ago.

Making a meaningful impact

Facebook wants to play a crucial role in helping people by bringing affordable online access to the two-thirds of the world not yet connected to the Internet. The company has been taking aggressive steps in this effort through its Internet.org partnership.

Internet.org already has some aggressive projects under way, including the exploration of high-altitude, long-endurance planes, satellites, and lasers for bringing Internet to underserved communities globally. Initially, the focus of these technologies will be the 10% of the world's population in areas that are difficult to reach with traditional Internet solutions.

A solar-powered drone pictured in Facebook's new Internet.org marketing video. Image source: Internet.org.

So far, Facebook has been liberal in the energy and resources it is putting into seeing its Internet.org mission through. The company's big vision to bring Internet solutions to the rest of the world shows it is focused on more than its own immediate profits and stock price.

Facebook has proven that it is willing to go the extra mile in acting ethically for key stakeholders. Its track record of valuing customers and employees while still providing value for investors and pursuing a noble cause to connect the rest of the world make Facebook one of America's best companies.

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The article Is Facebook One of the Best Companies in America? originally appeared on Fool.com.

Daniel Sparks owns shares of Apple. The Motley Fool recommends Apple, Facebook, Google (A shares), and Google (C shares). The Motley Fool owns shares of Apple, Facebook, Google (A shares), and Google (C shares). Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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