It's official. We have now begun
Are you ready to profit from the coming boom?
The fact that
paying $19 billion for profitless WhatsApp
is the buy signal of the century for momentum investors.
On top of the exorbitant price paid for the company, Facebook
CEO Mark Zuckerberg went on to say he is putting no pressure on
WhatsApp to generate revenue.
What he wants instead are eyeballs. Billion-user businesses
are worth a lot, according to Zuckerberg.
He may be right. The last time this happened, the market
exploded higher in a wave of irrational exuberance. I'm guessing
the same will happen in dot-com bubble part II.
Some lessons are never learned, and while you may be concerned
about that, you can also profit from it.
Focus on the technology boom occurring in social media and
personal computing devices.
It's yet to be seen whether or not any of these businesses
will be sustainable and more importantly profitable.
Does that really matter now? Of course it doesn't. Investors
can and will make a lot of money on this
second dot-com bubble
, and you can too.
5 Dot-Com Bubble Stocks to Buy Now
The leader of the next dot-com bubble has to be Facebook.
While many bemoan the price paid for WhatsApp, can you really
blame them? Facebook is in a precarious position, knowing that it
is the "next big thing" away from itself becoming irrelevant.
Forget about innovation. The name of the game here is to make
sure you own the next big thing, which prevents your competition
from beating you to the punch. Beating Google to buy WhatsApp
is mission accomplished for Facebook.
In a dot-com bubble part II, this stock could easily double in
value or more. We are a long way from the music stopping.
Investors can buy
today and let the wave carry them higher.
Some speculate that Twitter might be a loser with a Facebook
and WhatsApp merger. Not a chance. The next dot-com bubble will
carry all boats higher, including Twitter. The site is becoming
ubiquitous with respect to its daily use and influence in the
media. I wouldn't worry much about slowing user growth
numbers. A misstep or two is to be expected for a young company.
Twitter is poised to grow irrespective of profits - expected to
be a penny per share in 2014. With shares trading $20 below their
$74 peak, Twitter is a bargain for anyone looking to capitalize
on the next dot-com bubble.
This online radio stock made a small profit in 2013, but I
wouldn't expect that to last. Not when you consider the
competition the company faces from traditional media - not to
. Pandora should and will likely use any cash flow to grow its
user base. What matters now is not growing profits. Just ask
investors how important profits are. They are not. What does
matter is having as many users as is humanly possible. Succeed
there and you will win the game during this second dot-com
Yelp lost money in 2013 and is expected to lose money in 2014.
That's a good thing - as the assumption is the company is focused
more on growing its user base. This
darling was a first mover in the smartphone wars. It should use
that advantage to solidify its spot in the pantheon of
money-losing, fast-growing user base companies that will
likely be rewarded by investors in this second dot-com bubble. If
WhatsApp is worth $19 billion, wouldn't it be reasonable to think
that Yelp is worth more than the current market cap of $6.5
billion? I think so. In this new paradigm, Yelp easily doubles in
value from here.
Angie's List (ANGI)
2013 was not a good year for Angie's List. The company lost a
boatload of money and its share price sank. Just recently the
stock was hit again after missing Wall Street estimates for the
fourth quarter of 2013. Analysts are expecting more losses in
2014. That's the perfect set-up for the next dot-com wave.
Angie's List now has a market cap less than a billion dollars.
Compare that to the value of WhatsApp and I would say one could
easily double or triple their money here. I want to see more
losses! Just grow your user base and the investors will come
begging for more. We can worry about profits later - long after
the shares have appreciated and we have exited the position.
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