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Facebook Stock Holds Risk: Blodget

Facebook stock has had "a momentous run" and could see revenue reacceleration, but there are still risks ahead, Business Insider's Henry Blodget said Wednesday on CNBC.

"Long-term I'm still worried about the valuation on this one," he said.

On "Fast Money," Blodget noted that Facebook took its 50 percent operating margin down to about 40 percent. But "when revenue growth decelerates again, multiples will compress quickly."

"There's a scenario where you could have the stock have a very nice run, but then the multiple starts to compress at the end of the year," he added.

(Read More: Facebook Leaves Leaves Unanswered Questions: Analyst)

Blodget added that the stock, which trades around 45 times 2013 earnings, would not likely be helped by its "graph search" function.

"The search engine is irrelevant, and I think, frankly, disappointing for those who were hoping that they would be very close to a big pot of money on search because they could not be farther from the money," he said. "Search is search. It's sort of interesting, but it's very far from where Google is coining money on search."

Trader disclosure: On Jan. 30, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Pete Najarian is long AAPL CALLS; Pete Najarian is long BAC CALLS; Pete Najarian is long JPM CALLS; Pete Najarian is long YHOO CALLS; Pete Najarian is long RIMM; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long MSFT; Pete Najarian is long DELL; Pete Najarian is long PEP; Brian Kelly is long QQQ; Brian Kelly is long XLK; Brian Kelly is long GLD; Brian Kelly is long SLV; Brian Kelly is long EURO; Brian Kelly is long JJG; Brian Kelly is long CORN; Brian Kelly is short EWY; Brian Kelly is short JGB; Jon Najarian is long WFT calls; Jon Najarian is long PSX calls; Jon Najarian is long RLI; Jon Najarian is long MAN; Jon Najarian is long TBT; Jon Najarian is long MGAM; Jon Najarian is short puts in FB; Enis Taner is long GS; Enis Taner is long AAPL; Enis Taner is long FB PUT FLY; Enis Taner is long AMZN PUTS; Enis Taner is long COP; Enis Taner is long SPY PUTS.

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