A Dangerous Way to Invest in Facebook
The following video is part of our "Motley Fool Conversations" series, in which chief technology officer Jeremy Phillips and senior technology analyst Eric Bleeker discuss topics across the investing world.
With Facebook finally public, ETFs and mutual funds will certainly begin buying up the stock. In fact, it's already started. The Global X Social Media Index ETF, created in November 2011 to allow investors to buy a basket of social-media-related stocks, is now roughly 8% weighted toward Facebook. In this video, Jeremy and Eric advise against buying this ETF for several reasons -- the primary one being that not all of the stocks in the ETF actually have anything to do with social media.
Facebook recently became the largest company ever to IPO. Yet all the buzz around this social media monster could prove off-base, as Facebook has deep problems converting its millions of members to revenue. We've created a new report, "Forget Facebook -- Here's the Tech IPO You Should Be Buying," that details a much better social media stock that has a longer runway for growth than Facebook. The report won't be available forever, so click here to get access today -- it's totally free.
At the time this article was published Eric Bleekerhas no positions in the stocks mentioned above. Jeremy Phillips has no positions in the stocks mentioned above. The Motley Fool owns shares of Facebook and LinkedIn.Motley Fool newsletter services recommendLinkedIn and SINA. 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.