Facebook Fans Vary in Value and 4 Social Media Stocks to Watch
Facebook, Inc. (NASDAQ:FB) users could be worth up to $100 or as little as $1.00. Some speculated that fans are worth $10, based on brands advertising on Facebook and how many impressions they get with actions taken. But until Facebook becomes a standalone marketing channel for a small business, it will be nearly impossible to figure the worth of the fanbase. If a business has 100,000 engaged fans, but is unable to figure the amount they drive in terms of dollars, they are not worth much.
LinkedIn Corporation (NYSE:LNKD) was upgraded on Friday with assistance from a new premium service for sales people that could assist in driving its revenue over the long term. Evercore upgraded LinkedIn to “overweight” from “equal-weight,” due to a bullish stance regarding the growth of its subscription revenue with assistance from the new service dubbed Sales Navigator. The professional social network’s newly rolled-out feature should gain a revenue of $600 million in five years, stated Evercore analyst Ken Sena.
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Groupon, Inc. (NASDAQ:GRPN) will launch a point-of-sale service for restaurants countrywide this week, according to Reuters. The service has been named Breadcrumb, and it has already been tested in about 100 New York restaurants, bars, and cafes prior the wider launch. The service runs on the iPad. It costs $99 per month to authorize one iPad, $199 for two, $299 for five, and $399 for up to ten. With Breadcrumb, Groupon looks less like a LivingSocial competitor (or vice versa) and more like a Square or Paypal competitor to Square.
Pandora Media, Inc. (NYSE:P): Federal legislation backed by Pandora Media Inc. has the ability to harm musicians and record labels by lowering their royalties, stated SoundExchange President Michael Huppe. Currently, the online radio industry has continued its rapid growth, according to Huppe, whose nonprofit group collects and distributes royalties. During the year, SoundExchange is collecting digital royalties from 1,800 outlets, compared with 1,210 in 2009 and 855 in 2007, he claimed during an interview. The Internet Fairness Act would minimize Pandora’s costs by up to half Albert Fried & Co. analyst, Rich Tullo, claimed in a report last month. The bill requires royalty parity among satellite, pay-TV and online services as a share of the revenue instead of a flat rate per track, he said. As of now, rates are currently determined by the Copyright Royalty Board, part of the Library of Congress.
Zynga, Inc. (NASDAQ:ZNGA) will do over $1 billion in bookings in 2012, and the majority comes from platforms that didn’t exist in meaningful form 5 years ago. Although the stock price has fallen, Zynga does about $200 to 300 million per quarter in bookings, and most come from a platform (Facebook) not existing in functional, meaningful form five years ago. Most of the growth also comes from smartphone app stores that didn’t exist 5 years ago either.
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