Facebook Inc (FB), Twitter Inc (TWTR), Yelp Inc (YELP): Dot-Com Bubble Stocks To Buy Now

social media etfsJames Dlugosch:  It’s official. We have now begun dot-com bubble part II.

Are you ready to profit from the coming boom?

The fact that Facebook (NYSE: FB) is paying $19 billion for profitless WhatsApp is the buy signal of the century for momentum investors.

On top of the exorbitant price paid for the company, Facebook CEO Mark Zuckerberg went on to say he is putting no pressure on WhatsApp to generate revenue.

What he wants instead are eyeballs. Billion-user businesses are worth a lot, according to Zuckerberg.

He may be right. The last time this happened, the market exploded higher in a wave of irrational exuberance. I’m guessing the same will happen in dot-com bubble part II.

Some lessons are never learned, and while you may be concerned about that, you can also profit from it.

Focus on the technology boom occurring in social media (NASDAQ:SOCL) and personal computing devices.

It’s yet to be seen whether or not any of these businesses will be sustainable and more importantly profitable.

Does that really matter now? Of course it doesn’t. Investors can and will make a lot of money on this second dot-com bubble, and you can too.

5 Dot-Com Bubble Stocks to Buy Now:

Facebook (NYSE: FB)

The leader of the next dot-com bubble has to be Facebook. While many bemoan the price paid for WhatsApp, can you really blame them? Facebook is in a precarious position, knowing that it is the “next big thing” away from itself becoming irrelevant. Forget about innovation. The name of the game here is to make sure you own the next big thing, which prevents your competition from beating you to the punch. Beating Google to buy WhatsApp  is mission accomplished for Facebook.

In a dot-com bubble part II, this stock could easily double in value or more. We are a long way from the music stopping. Investors can buy Facebook stock today and let the wave carry them higher.

Twitter (NASDAQ: TWTR)

Some speculate that Twitter might be a loser with a Facebook and WhatsApp merger. Not a chance. The next dot-com bubble will carry all boats higher, including Twitter. The site is becoming ubiquitous with respect to its daily use and influence in the media.  I wouldn’t worry much about slowing user growth numbers. A misstep or two is to be expected for a young company. Twitter is poised to grow irrespective of profits – expected to be a penny per share in 2014. With shares trading $20 below their $74 peak, Twitter is a bargain for anyone looking to capitalize on the next dot-com bubble.

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