"There is no company in the Internet area that has gained such a huge market share in such a short period of time," said Mark Hawtin, portfolio manager of the $64 million GAM Star Technology Strategy, a portfolio for offshore investors launched in February 2011. "It's absolutely a value asset in the Internet world."
Hawtin believes $18 to $25 a share "would be a great entry point."
While many analysts are concerned about Facebook's ability to generate revenues from advertising, Hawtin believes the model for the social media website will eventually be fee-based, which could prove very profitable.
"I think they will be the launch page for people to get to the Internet," he said. Under a fee-based structure, vendors would pay Facebook for every user that goes to their site from Facebook.
For example, if Netflix paid Facebook $10 for every person who came to their website, that could be $10 billion in revenue for Facebook, Hawtin said.
The fact that Facebook's stock did not go up right away and keep climbing in its debut may serve the company well in the long run, said Jerry Jordan, manager of the $67.2 million Jordan Opportunity Fund.
"If they were well-coached by their bankers, they may have been told to wait for three to four months after the IPO (to announce) any big projects," Jordan said. "You don't want to show your leverage before an IPO."
Jordan received a "tiny" allocation of Facebook stock pre-IPO and sold it the Monday after it started trading at a very small loss, he said. He may buy shares for the fund again if it hits $25 per share, he said.
Zack Shafran, manager of the $1.1 billion Ivy Science and Technology Fund is also unfazed by the concerns surrounding the stock's decline.