(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.
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.
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.
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.