Apple and LinkedIn: 2 Companies Outpacing Facebook


The following video is part of our "Motley Fool Conversations" series, in which senior technology analyst Eric Bleeker and chief technology officer Jeremy Phillips discuss topics across the investing world.

Facebook is the hottest IPO in a decade, but what might surprise some investors is that its growth actually trails some other big tech peers. Take Facebook's fourth quarter, in which it grew revenues 55%. Gaming site Zynga, which sees almost all its sales from Facebook, moved in lockstep with its growth rate. Those are impressive figures, but still only about half the sales growth of LinkedIn. Facebook's growth even trailed the largest technology company in the world: Apple. To put Facebook's total size in perspective, its sales in the fourth quarter were less than what Apple collected in iPhone sales from their smallest U.S. partner, Sprint. All this is to say that while investors are going head over heels for Facebook's IPO and willing to pay north of 25 times sales, it's not the only company with a huge user base and relevance in the areas technology will be moving in over the next decade. If you're looking for growth opportunities in technology, there are companies out there with more ability to scale their revenue or with cheaper valuations.

Facebook might be riding the social media revolution, but the truth is that that revolution is playing second fiddle to an even larger opportunity: the explosion of mobile devices like smartphones. The Motley Fool has just released a free report on mobile called "The Next Trillion-Dollar Revolution" that details a hidden component play inside mobile phones that's also absolutely dominating the exploding tech market in China. Inside the report, we not only describe why the mobile revolution will dwarf any other technology revolution seen before it, but we also name the company at the forefront of the trend. Hundreds of thousands have requested access to previous reports, but you can be among the first to access this report by clicking here -- it's free.

At the time thisarticle was published Eric Bleeker has no positions in the stocks mentioned above. Jeremy Phillips has no positions in the stocks mentioned above. The Motley Fool owns shares of Apple and LinkedIn.Motley Fool newsletter services recommendApple and LinkedIn. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.