When it comes to social media stocks to invest in, the temptation to net huge gains – like the 140% return Facebook (Nasdaq: FB) has seen over the last nine months – is tempered by wariness over mass hype and the real risk of failure.
It’s a classic “reward versus risk” dilemma.
Money Morning Defense & Tech Specialist Michael A. Robinson has been watching tech sector transitions for decades.
With Facebook (Nasdaq: FB) stock now surging after its 2012 initial public offering disaster (investors have enjoyed a 140% return over the past nine months), excitement over upcoming social media IPOs is higher now more than ever.
Of all the potential upcoming social media IPOs this year, two stand out - both are well-established and stable companies with overwhelming public popularity.
Here's a look at these two companies that may debut this year...
The IPO market over the past few years has reflected the surging popularity of social media. Since 2011, the four biggest social media IPOs have combined to raise nearly $19 billion in their initial public offerings.
Facebook Inc.'s (Nasdaq: FB) 2012 IPO raised $16 billion, making it the third largest IPO in U.S. history. The public debut of Twitter Inc. (NYSE: TWTR) in November 2013 raised $1.8 billion, making it the second-largest Internet IPO ever.
When it comes to social media companies to invest in, the temptation to net huge gains - like the 140% return Facebook (Nasdaq: FB) has seen over the last nine months - is tempered by wariness over mass hype and the real risk of failure.
Groupon Inc. (Nasdaq: GRPN) will report Q4 2013 earnings after closing bell today (Thursday). GRPN stock gained 1.2% in pre-market trading Thursday, despite projections of a slow quarter.
The current Wall Street consensus expectation is earnings per share (EPS) gain of $0.02 per share on $718.67 million in revenue, compared to a loss of $0.01 per share in the same period a year ago.
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This morning (Tuesday), Money Morning Chief Investment Strategist Keith Fitz-Gerald appeared on FOX Business' "Varney & Co." to discuss whether Netflix (Nasdaq: NFLX) and Twitter (NYSE: TWTR) stock are buys for investors.
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The rumors of a Spotify IPO were stoked yesterday (Monday) following a report that the music-streaming company is recruiting a U.S. financial reporting specialist.
The "External Reporting Specialist" job advertisement on Spotify's website states the company is looking for an employee who can "prepare the company for [U.S. Securities and Exchange Commission] SEC filing standards. Set up all reports necessary to be SEC compliant."
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LinkedIn Corp. (NYSE: LNKD) stock dipped as much as 12.5% in after-hours trading today (Thursday) after the company announced weaker 2014 guidance figures than most analysts expected.
LNKD is projecting revenue between $455 million and $460 million for the first quarter of 2014. That's well below analysts' estimates of $470 million.
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As we've seen in the past few years, not all social media stocks have been successful investments...
Online game-maker Zynga Inc. (Nasdaq: ZNGA) started trading at $10 a share in 2011, then tumbled 7.75% to $9.25 in just four hours of trading. It never recovered, and in June, the company announced it was cutting 520 jobs. Now Zynga shares are trading at $3.69, compared to a high of $14.69.
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Social media stocks are on fire. And now that Twitter has gone public with its IPO plans, investors are lining up to buy the stock. But before blindly buying into Wall Street's latest craze, make sure you take a few minutes to find out where their money really comes from.
The potential for profits will blow you away...
The Twitter IPO SEC filing was revealed to the public just yesterday, but the comparisons to Facebook's calamitous IPO started long before that. Beyond being social media stocks the two have little in common, however. Here's why Twitter's IPO will be different...
