5 Big Beneficiaries of Facebook’s IPO

03/06/2012 9:00 am EST

Focus: STOCKS

Marc Sperling

, T3Live, LLC

The most hyped-up IPO of all time is coming, writes Marc Sperling, and these five media and social networking stocks are likely to perk up in response to Facebook’s IPO as well.

The market has been on a steady, methodical march in 2012, rewarding traders and investors looking to hold swing positions until a major market-composure change. Technical traders should never look to make blind predictions, but rather always wait until there is a major technical signal to switch gears. 

"The trend is your friend" is one of the only trading cliches worth paying attention to, in my opinion. I am at my best in trading when I ignore everyone calling for major selloffs and challenge myself to hold multiple positions for big swing moves.

Good and great traders, I believe, are often separated by their abilities to hold winners. Good traders have a strong command of risk management, while great traders have sound risk management and the ability to let winners run.

Another theme I will be watching very closely over the next couple months is the social networking. I have one word for you: Facebook. While we saw some new media and social networking stocks perk up on the filing of Facebook’s IPO, I believe we will see historic hysteria over this new issue that will have significant spillover to the rest of the sector. 

We have stocks like Zynga (ZNGA), which derives a significant portion of its revenue from Facebook, and LinkedIn (LNKD), probably Facebook’s biggest social networking competitor (or cousin), that could stand to gain the most.

I also believe some less-similar new issues could benefit as well. Stocks like Groupon (GRPN), Yelp! (YELP), and even Chinese names like Sina (SINA) could get a boost. FB is one of the most-hyped IPO’s of all time, and I believe traders are currently underestimating the effect it will have on the market and its sector.

See related: The Only IPO That’s Worth the Hype

By Marc Sperling of T3Live.com

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