Wednesday, April 8, 2009

James Altucher Discusses Facebook IPO

In this video, James Altucher of TheStreet.com discusses the possible beneficiaries of a Facebook IPO.

Amazon.com (AMZN) – “Everyone building applications on top of Facebook or Twitter is gonna use AMZN’s cloud services to host all their applications to handle the growth.”

Valueclick (VCLK) – “Company trades for just 6 or 7 times cash flows, they have a ton of cash in the bank, I think there’s gonna be a resurgence in Internet advertising advertising as everyone realizes what a scam all other forms of advertising are.”

Google (GOOG) – I also like happen Google here, because I like their advertising, the cost-per-action advertising. And believe it or not, Facebook drives much of the page views of Google, so I think Google is gonna benefit from  any surge in popularity that occurs with a Facebook IPO.

There aren’t bad ideas, but I think the Facebook IPO represents a new stage of maturity rather than a new catalyst for hyper-growth. Of the three, I like Amazon the best because as Facebook’s growth slows, the new focus will be increasing the time users spent on Facebook rather than adding new users.

That means any company or person using Facebook as a promotional tool will be building more complex apps – and Amazon is top dog in the cloud computing category.

Here’s another interesting video from James on what he believes are the “Greatest Scams of the Century:

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