Invest in foreign Social Media Company IPOs
Investing in Social Media companies, although a right choice but must be exercised on the global spectrum as very few of these hi energy start ups will reach the finish line and even fewer will post good profits. We have in the last year seen an array of Social Media Company IPO's, but a sizable action in this area is happening outside of America and market traded funds such as SOCL ETF may suit to some due to its standardised exposure that spreads worldwide.
The technology sector is being circled on by more and more investors. As, it has turned into a fast growing segment due to the arrival of smart cell phones and tablets and internet being accessible merely by anyone and anywhere.
The consumers are able to satiate once complicated but now made simple need of connecting with family and friends separated by distance with the use of internet and services like face-book, WhatsApp, twitter and Skype etc.
The international network is deep-seated in lives of individuals of all age groups for a variety of purposes like exploring online retail hubs (Amazon.com) or gaining information on current affairs across the globe (Google.com) or the teenage and youth are practically studying their curriculum on the virtual web.
It is the spread and impact of it which makes the invest in social media companies a good idea for American investors and the trend is catching up.
The Facebook [FB] IPO launch created a positive furore in the general public and investor world and its growth has laid what can be termed; a formidable ground for the new players to emerge and subsequently grow.
The face-book's purchase of instagram has already garnered the necessary attention for the company which now has whopping 850 million members and more than 50% of FB users use it on a daily basis.
The online social experience is the biggest driver for most consumers and out of all media; its influence is maximum when customers are to make simple consumer choices. Companies on the other hand are realising this effect and are aggressively evolving their official online presence in order to connect more effectively with their customers.
A lot for technology sector depends on the online social arena and other industries such as Electronics, FMCG etc are also not untouched from this newest phenomenon in the modern world.
At least 83% of the Fortune 500 companies are doing investments to improve their online interface and are aiming at making social media as major revenue contributor to their net sales.
Investors wanting to play the asset can opt for ETFs such as the First trust Dow jones Internet Index Fundand its various counterparts such as Global X SOCL ETF.
The social media index ETF gives a chance to secure popular American names like LinkedIn, Facebook and Google along with a sizable stake is acquired among the Chinese companies such as Baidu.com and Ten cent Holdings; which are among the fastest growing internet companies in the world.