CHARLOTTE, N.C. (TheStreet) -- Lately investors in the social media sector probably have felt as though the the stocks have been very antisocial toward them.
Obviously, social media Web sites have great public appeal. But just because you can get people to sign up for your Web site doesn't mean you can monetize that interest and make a profit.
Two social media stocks that have captured the public's interest have also taken some abuse.
The problematic Facebook (FB) IPO is still getting media coverage every day, and as you can see from the hourly trading chart below provided by Barchart.com, the stock has taken a beating.The underwriters supported the stock on only the first day till they could get the stock out of their inventories and into the public's hands, and then they laughed all the way to the bank. Down and down it goes and where it stops nobody knows. Some investors were lucky enough to get in on the LinkedIn (LNKD) IPO and made some nice gains, but later investors have had mixed results as the stock is still trying to find its legs. Since the IPO, weekly prices have been all over the place, as the following chart from Barcharts.com shows: So how do we make money in this sector? Again I go back to my four criteria:
- Projected growth in revenue
- Projected growth in earnings
- Recent price momentum
- Solid balance sheet
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV