Social Media Stocks • PART SIX

The Social Media Stock Market 

– Part 6 – 

Exploring the Social Media Variable in Evaluating Social Media Stocks

By Steven Friley

Evaluating Social Media Stocks

Historically stocks have been valued according to rock solid numeric data and marketing research. Utilizing business growth, profit and several other factors in the process. Over the past week we have followed the entrance of LinkedIn (lnkd) into the Social Media Stock Market. Many critics claim that LinkedIn was overpriced, and some say it was underpriced by the underwriters. During the evaluation process,  none of the normal conditions seem to be explaining why the value of LNKD continues to hold it’s own in the public sector.

Valuating Stocks using the Law of Numbers

The People Factor = 100 million (lnkd) Facebook = 500 million

When beginning to look toward future growth of Social Media Stock Market companies the human factor is one that is being over looked. Social Media has change the way companies market to a Global community, connected businesses with vendors, customers and partners, connected families and provided the world a communication method that is affordable. Because the benefits of using social media, truly help “people” they have bonded together to form a Social Network, with over 1 billion unified voices. The success of the Social Media Stock Market is being fueled by voices of supporters who may have never invested in the stock market.

The Human Factor – How Everyday People Benefit from Social Media

LinkedIn is a company that is helping people. The economic conditions in America often cause an over all sense of despair within groups of socio-economic classes who somehow believe their is no hope. Unemployment is also a major issue in America. LinkedIn has provided options for people to reach out across their own state border to find work or connect with others who can connect them with work, but LinkedIn provides a people driven solution to many of the social conditions we look at as painful. Because of this one Variable, the professional evaluations are shifted. The Social Network is HUGE! The numbers speak volumes. Social Media connects the world like no time in our history and will not weaken, only strengthen over the next 10 years.

Hear it from the CEO himself;