Facebook Explodes Higher On Very Heavy Volume

Facebook has exploded, up almost 28% today on VERY heavy volume.  There are days when the entire Toronto Stock Exchange trades less than half of the volume Facebook has traded today (and the day is not over).  LinkedIn is up strongly in sympathy.  QQQ and especially FDN are up as a result.(Disclaimer:  I own FDN and QQQ)

Facebook Up 17% After Hours, LinkedIn Trend Is Up, FDN Is The Best Way To Play Them Both

Facebook finally posted earnings results that beat estimates and will be rewarded by the market tomorrow.  However, its social networking cousin, LinkedIn, seems to be the better play.

Despite the fact LinkedIn is a fraction of Facebook's size,  it has far more predictable earnings and revenue growth data and is likely to continue its smooth growth in the future as it continues to implement more revenue generating service offerings to its members.

It is extremely hard to determine the likelihood of success of a given social network or high P/E multiple internet company.  FDN is an ETF that tracks the Dow Jones Internet Composite Index. Although it has a more modest MER of 0.60%, it is worth every penny over the long term.