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.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.