Health & Fitness
What to Know About Social Media Stocks
Social media is a fairly new stock sector and has been making news this year. Sheldon Harber, President of Asset Strategies, Inc. has been following them because investors are raising many questions.
Social media is a fairly new stock sector and has been making news this year.
Sheldon Harber, President of Asset Strategies, Inc. has been following them and will continue to follow them because they are raising many questions daily from investors.
Q: Something that’s come out in recent years is social media companies that are publicly-traded. Who are some of the companies stock buyers can look at right now?
Find out what's happening in Creve Coeurwith free, real-time updates from Patch.
Sheldon: I don’t want to name name but I will tell you what investors should do. It reminds me a lot of when we had the dot-come issue at the beginning of the century. Certainly there were a lot of companies that made sense to invest in. The same exercise applies here. You have to look at the social media company and look at their ability to make money. The original thought that this was going to be based on advertising worked for a while but seems to be moving away to things like paid search as opposed to how many users that company has. Just like any other type of investiting, you have to do your homework and don’t just go by what you’re hearing from your friends. A social media company that’s popular doesn’t necessarily mean you’re going to make money.
Q: It appears there are few social media companies you can buy stock. Is that an advantage for the buyer?
Find out what's happening in Creve Coeurwith free, real-time updates from Patch.
Sheldon: The competition is out there. Whether you’re publicly-traded or not, you have intense competition. The young kids coming out of college are so tremendously innovative and talented and they’re coming up with new technologies it seems on a daily basis.
Q: Do social media companies use tradition business platforms or something new and dynamic like the product they create?
Sheldon: That’s a really interesting question. That’s because some of these social media companies are mobile and some of these companies are both mobile and desktop. so they have different platforms that they have to utilize. That’s the big task for some of these companies, to figure out which platform they’re going to use.