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How To Profit From The Facebook IPO Via Social Networking Stocks


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How To Profit From The Facebook IPO

profit from the Facebook IPOThere are a number ways to potentially profit from the Facebook IPO.  The Facebook IPO is the most anticipated Initial Public Offering (IPO) in many years.  A large IPO, such as the Facebook IPO, usually causes stocks in the same stock market sector to rally.  A rally in the social networking stocks sector could allow investors to potentially profit from the Facebook IPO in an indirect way.

Due to the expected high demand for Facebook IPO shares by well connected professional investors and investment firms, individual investors are likely to be unable to acquire a pre-IPO allotment of Facebook IPO shares.  However, individual investors are not necessarily shut out from the Facebook IPO entirely.  A number of social networking stocks trade publicly which have the potential to make gains prior to and during the Facebook IPO, which may allow individual investors to profit from the Facebook IPO, as stock market participants bid up the social networking stocks sector.

Profit From The Facebook IPO Via Publicly Traded Social Networking Stocks

The list of publicly traded social networking stocks that could be conduits to profit from the Facebook IPO is fairly long and contains a wide variety of publicly traded stocks that are involved in social networking to some degree.

Publicly traded social networking stocks listed on major stock exchanges that could be conduits to profit from the Facebook IPO include companies such as:  Google Inc. (NASDAQ: GOOG), which is not only the dominant Internet search engine in the United States, but also has a growing social networking site called Google+; Linkedin Corporation (NYSE: LNKD), which is not only known as the premiere career networking site on the Internet, but is also considered part of the world of social networking for networking with contacts in the business and professional realm,  Zynga Inc. (NASDAQ: ZNGA), which is an Internet gaming company that has been closely connected to Facebook;  Quepasa Corporation (AMEX: QPSA), which is known as the “Spanish Language Facebook” since its social networking website is designed to appear to Spanish speaking people; Vringo, Inc. (AMEX: VRNG), which is a company in the business of developing software applications for mobile social networking applications.

Chinese publicly traded social networking stocks listed on major stock exchanges that could be conduits to profit from the Facebook IPO include companies such as:  Renren Inc. (NYSE: RENN), which is a large social networking website in China; SINA Corporation (NASDAQ: SINA), Chinese search engine that offers a social networking website in China.

Publicly traded social networking stocks in the penny stock realm that could be conduits to profit from the Facebook IPO include companies such asSnap Interactive, Inc. (OTCBB: STVI), which develops online dating applications for mobile platforms and social networking web sites; WebMediaBrands, Inc. (NASDAQ: WEBM), which operates websites related to the social networking space, including the popular AllFacebook.com website that provides Facebook updates and services; FriendFinder Networks Inc. (NASDAQ: FFN), provides web-based video sharing services and social networking services through the Internet.

There is also a publicly traded Exchange Traded Fund (ETF) that owns publicly traded social networking stocks which could be a conduit to profit from the Facebook IPO:  The ETF is called the Global X Social Media Index ETF (SOCL).  SOCL has investments in the stocks of social media companies that operate in a number of different market sectors and countries.

Publicly traded social networking stocks, such as those mentioned above, are affected by stock market sentiment and ongoing company developments, which could impede or accelerate a social networking stocks rally that might occur in sympathy with the Facebook IPO.  Buying stocks in the social networking sector is a potential way to profit from the Facebook IPO; however, trading based on a potential stock sector rally in conjunction with a pending IPO is speculative trading, and proper precautions should be taken.

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