(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.
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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.
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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.