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Social Networking Investment Ideas

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Social Networking Investment Ideas

Social Networking Investment IdeasWith social networking stocks soaring, as social networking becomes a way of life for billions of people around the world, investors are looking for social networking investment ideas to get involved in the hot social networking sector.  Although many of the top-tier social networking stocks, such as Facebook (NASDAQ:  FB) and LinkedIn (NASDAQ:  LNKD), have made big moves higher and are widely considered by Wall Street analysts to be fully valued, there are a number of lesser known publicly traded social networking stocks that may present good investment value.  Not only do the lesser known publicly traded social networking stocks present the potential for future growth, as interest in social networking grows, they also can be considered potential takeover candidates, as companies look to grow in the high social networking sector.

Although the high-profile Facebook IPO in 2012 got off to a rocky start, Facebook has recovered nicely since its IPO the initial sell-off that followed the IPO, and is now selling well above its IPO price.  Other social networking stocks, such as LinkedIn, have done quite well since their IPOs, and have become darlings of Wall Street that are highly spoken of by analysts and sought after by investors.  Social networking stocks are once again back in focus, with the Twitter (NYSE:  TWTR) IPO offering another top social networking stock investment avenue for investors that are hungry for social networking stocks.

Why Investors Are Excited About Investing In Social Networking Stocks

Twitter Social Networking
The reality of long-term investing is that an investor needs to invest their money in an industry that has future growth potential to see their investment grow over time.  Throwing money at random stock market sectors is not an effective investment strategy, since some sectors grow much more slowly than others, and at times, some sectors do not grow at all.

Investors are excited about investing in social networking stocks and learning more about social networking investment ideas because of the growth that the social networking sector has already experienced and is projected to experience in the future.  Social networking is here to stay, and is going to be a part of everyday life and business for the foreseeable future.  Social networking is still in the relatively early stages of industry development, and many investment opportunities remain, especially in the secondary and tertiary social networking companies that are publicly traded.  For investors that would rather invest in the social networking sector as a whole, instead of trying to pick individual winners, there is an Exchange Traded Fund (ETF) that is available that focuses exclusively on the social networking sector.

List Of Publicly Traded Social Networking Stocks To Play The Facebook IPO

The following is a list that includes many of the publicly traded social networking stocks that are available at the time of this writing.

  • Facebook (NASDAQ:  FB) – Dominant social networking site on the Internet that sets the standard in social networking
  • Google Inc. (NASDAQ: GOOG) – Dominant Internet search engine with an increasingly popular social networking service called Google+
  • Linkedin Corporation (NYSE: LNKD) – Dominant professional career networking site for networking with contacts in business and professional circles
  • Renren Inc. (NYSE: RENN) – Operates one of the largest social networking sites in China
  • SINA Corporation (NASDAQ: SINA) – China based Internet search engine that offers social networking services to Chinese language users
  • MeetMe, Inc. (AMEX: MEET) – Operates a social networking site that is geared towards people looking to meet new people online
  • Mediabistro Inc. (NASDAQ: MBIS) – An Internet media company that provides content, education, and career services to social media, traditional media, and creative professionals through a portfolio of online properties and communities; including, which chronicles developments at Facebook and provides unique Facebook services
  • Vringo, Inc. (NASDAQ: VRNG) – A company that provides software applications for mobile social networking applications.
  • FriendFinder Networks Inc. (Pink Sheets: FFNTQ) – An Internet and technology company that provides social networking services and web-based video sharing services
  • Snap Interactive, Inc. (OTCBB: STVI) – An application developer that provides online dating applications for social networking web sites and mobile platforms

social networking investment ideas wide

Publicly traded Exchange Traded Fund (ETF) that focuses on publicly traded social networking stocks:

  • Global X Social Media Index ETF (NYSE:  SOCL) – An ETF that invests in social media companies throughout the world

Things To Look Out For In Social Networking Investment

One thing that makes investing in social networking stocks interesting and potentially lucrative at this point is the fact that the social networking sector is still relatively new, with some notable social networking companies such as Twitter just transitioning to publicly traded companies.  Large social networkings companies have reasons for going public, which investors should understand.  Besides wanting to unlock value for insiders and early investors, large social networking companies are motivated to go public via IPOs so they can easily takeover smaller rivals and build their presence in the social networking marketplace.  Takeovers of public companies are easier to complete if the suitor is also a publicly traded company.

Takeovers of social networking companies have already begun, with Facebook taking over Instagram and Yahoo taking over Tumblr.  If the stock market remains healthy, it is reasonable to assume that takeovers of social networking companies will continue for years to come, which could cause decent price appreciation in the various social networking stocks that could be considered takeover targets.  Additionally, rapid growth of users and revenues in the social networking sector should contribute to an upward bias in the price of social networking stocks for years to come, which should provide nice returns to social networking investors.

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