A look forward into the 2013:
- Facebook (FB): Raise your hand if you have never heard of Facebook. Exactly. The company’s worldwide reach is stunning: now more than 1 billion users and 500 million on mobile. I believe the real investment belongs in mobile advertising as Facebook continues to grow exponentially. It’s amazing that the company made $0 in 2011 in mobile advertising. I believe in 2012 mobile revenue will exceed $500 million and should continue to grow strongly into 2013. Facebook is my top pick for 2013.
- Yahoo (YHOO): Another company looking to grow through display advertising. The company recently hired Marissa Mayer from Google (GOOG), and I believe the stock is looking to finally breakout after trading in the sub-$20 price range in recent years. As a frequent Yahoo user, I’ve witnessed changes that have been happening quickly. I think the new mail platform is much easier and smoother than its previous version. The Yahoo homepage, which is not yet fully functional, looks to be much improved. As a turnaround play, I don’t see a better company.
- Tesla Motors (TSLA): I believe this is a bit more speculative, but provides access to an industry with a new look and feel that hasn’t changed in over a century. The automobile industry may have finally hit some competition. Tesla is a luxury-electric vehicle company that sells a beautiful sedan from Silicon Valley. Reservations for the vehicle are approaching their 20,000 unit estimate for 2013. In fact, the company may need to raise their numbers, as the vehicle was recently named Motor Trend’s car of the year.
- Sodastream (SODA): Continuing the theme of changing industry standards, Sodastream is the first company to penetrate the home carbonation market in the US. The company’s sales continue to grow worldwide with the US market consisting of about 33% of their revenues. Using the razor blade model, the company looks to bring retailers consumers for repeat business, which is something that retailers cherish. The company’s Q4 earnings look to be stellar, in my opinion, as many retailers reported sellouts of the company’s machines during the holiday season.
- Zillow (Z): With the housing market looking stronger, I believe this company should gain traction in the real estate market. I find this is a great tool for consumers and agents to use when looking to buy or sell homes across the US. Although monetization has been slow, I expect to see this company gain greater traction in 2013.
The investments discussed are held in client accounts as of December 31. These investments may or may not be currently held in client accounts. The reader should not assume that any investments identified were or will be profitable or that any investment recommendations or investment decisions we make in the future will be profitable.