logo
  Join        Login             Stock Quote

Facebook’s IPO? No Way! Buy This Underhyped Stock Instead

 May 17, 2012 12:10 PM
 


(By Louis Basenese )  Earlier this week, Apple's (Nasdaq: AAPL) co-founder, Steve Wozniak, told Bloomberg Television he would buy Facebook's IPO – which is scheduled to start trading on Friday – regardless of its valuation.

"I would invest in Facebook," said Wozniak. "I don't care what the opening price is."

Really, Steve? I can guarantee you that a "buy at any price" strategy isn't a successful one. No backtesting required.

Nevertheless, I know there are countless investors out there that fall into the same camp as Wozniak. They're buying into all the hype, just to make sure they don't miss out.

[Related -International Business Machines Corp. (IBM): Hardware Woes Weigh On IBM Results]

Even if the company jacked up its pricing range on Tuesday to $34 to $38 a share from the previous range of $28 to $35. And even if the fundamentals don't exactly stack up, which I noted here, here, here, here, here and here.

[Related -Fusion-IO, Inc. (FIO): Can Fusion-IO Q2 Results Cheer Street?]

To borrow Mr. T's catchphrase, "I pity the fool." But I'm not going to waste any more breath on warnings about Facebook's IPO.

Instead, I'm going to offer up an alternative – a way to benefit from the Facebook IPO hype without all the risk.

Here's how…

The Smartest "Because of Facebook" Investment

In previous columns, I've railed against social gaming company, Zynga (Nasdaq: ZNGA), because it relies almost entirely on Facebook to generate revenue. (In the last quarter, Facebook accounted for 92% of Zynga's sales.)

But what if we could find a company that generated a modest amount of revenue from Facebook, and therefore was levered to the social networking giant's growth? Well, then we'd have the perfect "because of Facebook" investment.


Next Page >>123
iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageChina's Cunning Plan To Revive Growth

By now, we all know the story of China's troubles. China achieved its stunning growth through a combination read on...

article imageA Mild Improvement For The US Macro Trend In May… So Far

How’s that second-quarter rebound working out for the US? It’s still a shaky affair, but there are signs read on...

article imageThe Future Of Banking Is Now On Sale

The initial public offering class of 2014 was surely an elite group. 275 companies raised a combined $85 read on...

article imageTextbook Arc Rounded Reversal for High Flying Airlines

A beautiful chart pattern played out on two airline stocks – Southwest and United read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.