I’m not going to tell you that you should already own Apple (NASDAQ: AAPL), especially now that it has a juicy dividend – because you already own it. Same with Google (NASDAQ: GOOG) and Amazon (NASDAQ: AMZN), right?
So here’s a list of some other great companies that are leading us into the next decade. Perhaps, like the early Microsoft (MSFT) and Apple (AAPL), some of these, too, will win big over the long term – regardless of what happens with the global slowdown or the collapse of the Euro (if that happens).
10 New Economy Stocks
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In no particular order:
Zillow (NASDAQ: Z) – Zillow is an online real estate database that makes its money largely from selling advertising on its site, and leasing its data out to search engines. Zillow has continued to grow and now has launched mobile applications on all major mobile platforms. Its shares trade around $40, about 9 months after their 2011 IPO.
Zipcar (NASDAQ: ZIP) – Zipcar is the famous car-sharing network, a leader in the field, and has just expanded into Austin, Texas, making Austin the 18th major metropolitan area the company has expanded to, and offering a fleet of 40 vehicles. The shares trade just above $10 currently after an IPO in late 2011.
Groupon (NASDAQ: GRPN) – Remember Google tried to buy these guys out, but Groupon rejected the offer. Going public back in November 2011, Groupon is still leading in the social media stock category right up there along with Facebook.
Angie’s List (NASDAQ: ANGI) – ANGI is showing excellent growth, but its expenses are keeping up with it, as well. Some have argued that it, along with Pandora and Yelp, haven’t done enough to move away from traditional business models for gaining revenue from advertising. But ANGI is one of the few new social media companies to collect money from paid memberships.
Facebook (NASDAQ: FB) – See my recent post on the Facebook IPO flop and potential problems with Facebook’s profit model. That being said, Facebook is clearly a huge player and not going anywhere, so it would probably pay to have at least a small position here for sure. The question is when to jump in.
Zynga (NASDAQ: ZNGA) - Zynga’s share price saw a nice boost following the Facebook IPO. Zynga, of course, is the maker behind all those Facebook games that everyone else plays but which you despise. Zynga is still growing and represents the largest browser-based gaming platform for Facebook.
Pandora Media (NYSE: P) – The online, free music service that has grown in popularity over the past three years made its IPO debut less than a year ago in June 2011. It relies on those ads you keep skipping over, and on monies taken in from memberships from those who wish to skip the ads.
Baidu (NASDAQ: BIDU) - While this ADR is not a new offering, there is no mistaking that it can only grow in an environment where Google, Facebook and other social media are blocked. Even in sheer numbers alone, the Chinese Google-equivalent can boast more potential searches, and definitely more Chinese-language searches, than Google. Owners of BIDU prior to the nice stock split in May 2010 have already been rewarded quite well.
Millenial Media (NYSE: MM) – You might not yet have heard of this provider of mobile advertising solutions, but they went public earlier on in 2012 and have so far done fairly solidly, although also experiencing a drop following their IPO just like Facebook.
Yelp (NYSE: YELP) – That’s right, the famous online review service (of everything goods and services) went public earlier in 2012 as well. It now trades around $18.
Netflix (NASDAQ: NFLX) – OK, this makes #11, but it was worth keeping Baidu in the list. Netflix has had some bumps in the road but is clearly a key player going forward in the online and streaming media delivery business.
What distinguishes these companies from the prior dot-com generation of flops is that these have all gone public, for the most part, after having developed a solid track record and deep customer bases (even if the revenue isn’t fully there yet). In other words, if any money is to be made in social media, or in Web 2.0, it is this basket of companies that will be collecting first.
Of course, this list is just the tip of the iceberg of what we can expect from the truly “new” economy, but these are the ones that are taking us there and coming along for the ride.
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