Investors liked Facebook’s Q1 results, which beat analyst’s predictions and revealed that the company's mobile advertising has doubled. Shares duly rose but are they fundamentally overvalued? Yes, says Rick Summer, equity strategist at Morningstar research, who believes the stock has a fair value of around forty five dollars against the current price of just above sixty dollars.     

Shares rose by around four percent shortly after Q1 results were made public. Profits were $642 million with revenues up seventy two percent. Mobile advertising now accounts for around sixty percent of the total, up by around thirty percent.