Out Fox The $treet

The biggest issues facing social media stocks are the questions regarding longevity and deriving ways to monetize the massive amounts of data generated by users. Facebook ( FB ) already faces an issue where the original users are now abandoning the site while Twitter ( TWTR ) isn't grabbing the casual social media people. One thing is probably clear by now is that users crave a certain level of social interaction via social networks. The real question is whether a constant shift in social networks will take place over time similar to the social hangouts and nightclubs that constantly rotate, as new concepts push old clubs into the rear view. Read the full article at Seeking Alpha. Disclosure: Short FB. Please review the disclaimer page for more details. 

After large gains following successful IPOs, it is common for a company to do a follow-on offering, allowing for pre-IPO shareholders to cash out. Recent history in hot Internet follow-on offerings have signaled a top in the stock, at least temporarily. While most would debate if the IPO was really successful, currently hot Facebook ( NASDAQ: FB     ) announced plans to sell 70 million shares by the company and its shareholders. The leading social media firm follows other hot social media stocks, including LinkedIn ( NYSE: LNKD     ) and Yelp ( NYSE: YELP     ) that had similar offerings. Those stocks have underperformed the markets in the months following the related offerings. Read the full article here . Disclosure: Short FB. Please review the disclaimer page for more details. 

When a stock drops by more than 6% in one day due to a research report, long-term investors need to see if any issues were brought up that change the investment thesis. On Friday, Zillow ( NASDAQ: Z     ) plunged nearly $10 at one point on the back of a negative report by Citron Research. In some regards, the situation is even more pressing in a stock such as Zillow, which had gained more than 330% off the bottom prior to the report on Friday. Read the full article here . Disclosure: No positions mentioned.

As investors ponder whether Zillow (NASDAQ: Z ) is overvalued at $70, the big picture needs to be considered. The company has a market value of nearly $2.5 billion and revenue that won’t even cross $200 million this year. While it might be difficult to envision it being worth $10 billion at this point, the company appears to have all the makings of a future that big. The company more » Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

As investors ponder if Yelp (NYSE: YELP ) is overvalued at $42, the big picture needs to be considered. The company has a market value of $2.7 billion and revenue that will only cross $200 million this year. While it might be difficult to envision it as worth $10 billion at this point, the company appears to have all the makings of a future that big. The company is a more » Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

As a leader in the real estate online market place, investors might be shocked that Zillow (NASDAQ: Z ) is only worth $1.8 billion. The website has long been a go-to place to review houses for sale and home values, yet the level of revenue and market value might surprise investors. In fact, this investor regularly used the website back before the financial crisis in an era before Facebook and more » Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

--> For existing investors and those seeking a new patent stock, Document Security Systems, Inc (DSS) offers a potential homerun opportunity. The previous article, Document Security Systems Has Significant Patent Monetization Plans , offered a glimpse at the potential in the stock. The real key for the stock will be the execution of those plans. DSS is a leading developer and integrator of cloud computing data security, Radio Frequency Identification (RFID) systems and security printing technologies that prevent counterfeiting and brand fraud. With the stock lingering around 52-week lows around $2.70, investors still have the opportunity to purchase the stock below the merger and private placements levels. That price won’t last over the next few weeks and months if the company starts executing on target dates whether with the patent cases or the merger. Catalysts The company has several major catalysts that could push the stock up starting with the Motion to Transfe...

When Document Security Systems, Inc (DSS) announced plans to merge with Lexington Technology Group, Inc (LTG), the company signaled a shift in business plans to focusing on monetizing IP assets. With DSS in the process of a lawsuit against Coupons.com over misappropriated trade secrets and breached confidentiality agreements, the merger with a manager of IP assets appears to provide benefits to both shareholder grou ps. DSS is a leading developer and integrator of cloud computing data security, Radio Frequency Identification (RFID) systems and security printing technologies that prevent counterfeiting and brand fraud. With the LTG merger, the company plans on becoming a dominant patent monetization company with the goal of being the Blackstone Group LP (BX) of the sector. DSS Q3 Highlights Below are the highlights from the Q3 earnings report: Revenues for Q3 2012 were $4.2 million, a 15% increase over Q3 2011. Gross profit for Q3 2012 was $1.5 million, a 20% increase over Q...

Monster Worldwide (MWW) closed up 19% on Friday due to more speculation on a buyout. According to a Reuters report, LinkedIn (LNKD) and private equity firm Silver Lake Partners were amongst numerous parties that expressed interest. Investors would be wise to not pay up on such a spike in the stock price. Monster placed itself on the auction block back at the end of February so such news shouldn't be a big surprise. Over the last three months just about every buyout related spike has led to cheaper buying opportunities within the next few days. Even more credulous about today's news was the speculation that LinkedIn would be interested in the company. Why in the world would a fast growing stock want to be bogged down by a deal with Monster? Read the full article at Seeking Alpha. Disclosure: Long MWW. Please review the disclaimer page for more details. 

As we wrote back on Monday, the official announcement of Monster Worldwide (MWW) hiring an advisor was a promising sign. The CEO had mentioned on the 1st that the stock was too cheap and that the company would seek a strategic deal to enhance shareholder value. Then on the 2nd, Oppenheimer questioned the true seriousness of a deal causing the stock to sell off. Not too surprising to see some doubters as Monster is always rumored as a buyout candidate. A rumor that so far has not come true. This time though appears different. Monster has actually acknowledged the interest and followed through with the hiring of an advisor. Possibly suggesting that some of the rumors in the past came from executives unhappy with the stock price and contemplating a deal. Read the full article at Seeking Alpha. Disclosure: Long MWW. Read the disclaimer page for more details. 

Ok, so that's a catchy title to correspond with the new Facebook app that Monster Worldwide ( MWW ) created to counter the trend towards social media recruiting especially by LinkedIn ( LNKD ). In reality, 2011 has been the year to not own MWW. Clearly any investor holding this top S&P 500 loser all year doesn't want to be known by the public. Times might be changing though as anybody buying since mid August could've participated in the 21% gain on Tuesday. Read the full article at Seeking Alpha.  Disclosure: No positions, but might purchase MWW within the next 72 hours. Please review the disclaimer page for more details. 

I'm not sure many people noticed, but Youku.com ( YOKU )  raised approximately $400M  after the close last Thursday. In total, up to an aggregate of $670M of stock was sold as pre-IPO investors cashed out close to $270M. That's assuming the over allotment of 1.8M shares were bought; those results have not been announced yet. This is remarkable considering this was a follow-on offering after the December IPO. Youku.com is the YouTube.com or Hulu of China, depending on whom you ask. It has huge growth potential, but limited revenue so far and no profits. The company will have a market cap approaching $6B after this offering.  Read the the full report on SeekingAlpha .