BALTIMORE ( Stockpickr) -- Facebook (FB - Get Report) is getting all the attention today as we creep one session closer to the social network's first day as a publicly traded company. The argument for most of the folks lining up to buy shares is simple: They want a chance to get in on a fast-growing IPO at the ground floor.
But their focus on Facebook is misguided. Here's why.
Put simply, Facebook is pricey. One of my colleagues said it best when he argued that "retail investors aren't buying Facebook at the ground floor; they're buying at the top floor and hoping that Facebook keeps building floors on top of it."
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Facebook is also in a saturated space. The firm has around 63% of the social media market right now, a share of the market that's essentially been stagnant since the end of 2010 according to data from Experian Hitwire. While that hardly means that revenue growth numbers are about to get blasted, it does mean that one of the biggest growth drivers, market share, has already died off. So while many investors scramble to buy Facebook shares at a premium on Friday, let's look at some alternatives: instead, we'll turn to a handful of technology names that still have that market share growth in place.
And frankly, the names on this list may surprise you. Market share growth isn't relegated to volatile small-caps; all five companies are mid-cap or bigger, and two are bigger than Facebook's expected market cap will be on Friday's first trade. To find them, I took a pure view of market share, screening for names that grew their revenues compared to the sum of their peers' revenues in the last year. From there, the most attractive fundamental names in the tech sector made this list.
Without further ado, let's get right down to the
five stocks growing their market share faster than Facebook