This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Trade Out Of Your FB IntoThis Web Blue Chip About To Disrupt Facebook

By Matt Schifrin



Despite all of the hoopla over the  Facebook's initial public offering it now appears that the stock will be an IPO dud.  If you were able to get Facebook (FB) shares you might consider trading out of it in favor of buying Google (GOOG).  That's the advice Paul McWilliams, editor of Next Inning Technology Research is telling his subscribers.  McWilliams- a former tech industry insider who counts George Gilder among his fans â¿¿ says he wouldn't touch Facebook stock as a long term investor. He thinks there is a big flaw in its advertising model.

Says McWilliams, "The core ethos of social networking is nothing can even smell like paid advertising â¿¿ social viral marketing must be genuine, spontaneous, etc. Sure, there are pros who make a good living triggering social marketing, but once it is sniffed out it is shunned.  GM has realized this and others will too."

McWilliams contends that Google is the much better option for investors and argues that it will leverage into social marketing in ways it can do better than Facebook. His focus :Google TV. Here is an excerpt from his newsletter.

Google's (GOOG) Re-imagining of the TV Experience

In February we published a series of posts detailing what I view as evidence Google (GOOG) will move into the content delivery business. This would mark a huge change for GOOG, but as I see it, there is no better way for it to leverage its core assets and disrupt the social networking models of Facebook and other sites that have encroached on GOOG's territory.

In short, TV viewing habits have changed radically during the last decade, but TV programmers and content delivery companies have not responded to these changes. As I see it, GOOG is uniquely positioned to leverage its core assets and, with that, deliver a new TV experience. If GOOG pulls that off in the fashion I think it can, the model would not only be very disruptive for social media sites like Facebook, it would also add radical new dimensions to broadcast TV that producers, advertisers, and performers would be quick to embrace.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,048.93 -22.29 -0.13%
S&P 500 1,969.75 -8.05 -0.41%
NASDAQ 4,487.3880 -18.4640 -0.41%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs