10 Reasons Facebook Stock Is a Buy in 2015

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Facebook Inc ( FB) has had a great run in 2014, rising about 35% year-to-date compared with gains of about 12% for the broader S&P 500.

Lately, however, Facebook stock has tapered off; In the last 30 days or so, FB is actually down 8% vs. a gain of about 6% for the broader market since late October.

So is this a buying opportunity, or a sign of distress for Facebook stock?

It's most likely the former. And here's why investors should consider buying into FB stock before 2015, as the social media company looks to power higher in the New Year:

1. Strong Facebook Earnings: While Facebook stock has been a bit soft since its latest earnings report, it's important to remember that the pessimism on profits isn't because of poor revenue or profits - it's because of a commitment to spend big on R&D in 2015. In fact, when you look beyond spending, there are many signs of optimism, including a 59% increase in Q3 revenue to $3.2 billion, topping expectations of $3.1 billion, and net income of $806 million in the most recent quarter to nearly double 2013 numbers.

Click to Enlarge 2. Loyal Facebook Users: It's hard to believe Facebook can keep growing after its dominance has already been asserted. However, in the most recent report, FB showed daily active users of 864 million worldwide, growing in all regions including already-saturated markets in North America and Europe. Furthermore, not only is there continued user growth, but those folks are engaged and making Facebook money. In the latest quarter, revenue per user continued to grow, hitting a rate of $2.40 worldwide - but most importantly, that figure grew from $6.44 to $7.39 in the U.S. and Canada for an impressive 15% growth rate.

3. Advertising Icon: Although Google Inc ( GOOG) has long been the gold standard of Internet advertising, the flexibility and unique targeting of Facebook means that CEO Mark Zuckerberg & Co. are increasingly at the top of the list when it comes to marketing budgets. Ask any ad manager, and you'll know that FB is a major part of any digital marketing campaign - and the launch of Facebook Atlas will allow for even more niche targeting, so Facebook stock should continue to benefit from strong advertiser demand in 2015. This is the company's primary revenue stream and thus the biggest lever to move Facebook stock in the near-term.

4. Facebook Cash Hoard: FB boasts $14.3 billion in cash on the books, minimal debt and operating cash flow that will likely finish the year around $5 billion. Add a willingness to make big deals with stock-based acquisitions instead of bleeding down its war chest, and it indicates a well-capitalized company that is poised to do big things in 2015.

Click here to keep reading reasons 5-10 on why Facebook stock is a buy in 2015.