There is simply no denying the social media revolution taking place right before our eyes. FaceBook, Twitter, LinkedIn, Angie’s List, Trip Advisor, Yelp and a host of others piggy backing on this general theme are here to stay and the new market leaders for the next several years. Terms like mobile advertising, daily usage, and demographic reach will supersede the discussions surrounding price to earnings or revenue growth.
As someone who has struggled to embrace the market rise over the last few years due to increased liquidity and technical trading that has taken a prolonged hiatus, I have no problem at all finding winners among this new class of social stocks. I have no doubt at all that momentum, and stock picking will make up for a lack of broad market participation and my home will be among traditional GARP plays that will more than likely have a direct connection to the mobile and social revolution.
While winners such as YELP, LinkedIn, are extended, Angie’s List has now been consolidating for after its recent breakout five days and looks exceptional on a risk reward basis. Furthermore any tuck-in on FaceBook is a buy from these levels in my opinion while Trip Advisor is preparing to break a high level 2 month base which would possess decent risk reward with a stop at $50.00
As we move forward into this new age I think it is critical we remain focused on this new crop of winners.
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