Out Fox The $treet

The sell of Myspace by News Corp for $35M after buying the company for $580M around 6 years ago should signal to investors to tread carefully with the current hype with social media companies. Even going back to Yahoo (YHOO) and how ten years ago it was the hot internet property. In a way, these companies have an initial spurt of business when they become cool with the early adopters or younger generation. Unfortunately like in the case of YHOO or Myspace at some point they become outdated or just can't keep up with the cool new features. The four social media companies in the process of IPO'ing in the next year all face significant risks to valuations that seem very obsessive compared to existing companies. Facebook - might not IPO until 2012. Though they are the dominant player in social media they face a significant issue with remaining the focal spot for youth. Youth originally dominated the site, but its recently seen a huge influx of adults. We all know that kids ...

Added Limelight Networks (LLNW) to both the Opportunistic Long Only and Opportunistic Levered portfolios. LLNW is a play on a faster internet and the potential for being the next Akamai (AKAM). Unfortunately it could be the ugly sister in that competition and thats never good for a stock. Some news today that triggered the move other then technical was the news that fast growing deal of the day company Groupon announced that they are using LLNW and have seen substantial improvement in their website speed. They also recently expanded an agreement with Netflix (NFLX). Both companies are at the leading edge of the web so its crucial that LLNW win these deals. Though the question remains whether LLNW can start making money on all these deals. Thats where the ugly sister typically comes into place. Sure they'll get dates, but its usually when the pretty sister is too busy or too demanding. The stock will soar if any of these new deals start dropping to the bottom line. Good inter...