Online Ad Plays That Are Safer Than Facebook
I am always amazed whenever an IPO "theme" hits the street. Whether it is the "Internet boom" of the 1990s or, more recently, all things "social media," I am stupefied as retail investors buy into the latest hot-trend stock and ante up to pay more than 100x earnings and 20x revenue for a newcomer that promises it is going to change the world. It rarely works out. The recent Facebook (FB) debacle is case in point. The stock has been a disaster since it hit the street at $38 a share, despite myriad red flags before and during its launch.
Most investors would be better served either waiting for the stock to have a year as a public company to get their feet (and usually a much lower stock price) under them and have the lockups expire as well. In addition, there is usually a safer, if less sexy, way to play the same theme. In the case of Facebook, the promise was for phenomenal online ad growth (we will ignore for the moment the company's challenges in the mobile space). If investors wanted exposure to that part of the market, they would have been better off by investing in these two mature but still-growing players in the space, that are offering much more reasonable valuations....333 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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