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Profiting from the Multi-Billion Dollar Social Media Market

Wednesday, 2 Feb 2011 | 6:21 PM ET

With non-public social media sites commanding billions of dollars in private trading, you probably don't want to wait until the initial public offering to get into the game.

Simon Baker of Baker Avenue Asset Management on Wednesday explained why you don't have to wait to get in on this multi-billion dollar industry. A successful IPO, he said, creates a "rising tide" scenario. When a social media company IPOS, it lifts other social media names by increasing their value.

Baker suggests looking at the following names:

Social Media Site Valuations
Alternative plays to Facebook, with Simon Baker, Baker Ave CEO.

Sina : This Shanghai, China-based company operates Weibo, a micro-blogging Web site that's similar to Twitter. Weibo currently has more than 50 million users in just a few months time, where it took Twitter three years to reach that many users. Baker thinks Sina is a great stock to own right now.

Tibco Software : Based in Palo Alto, Calif., this technology company operates a social business product called "Tibbr." Baker would buy this stock on a pullback.

Salesforce.com : The cloud computing company recently released a proprietary program called "Chatter" that connects employees with colleagues and Baker thinks it is promising. Baker also praised CEO Marc Benioff for his leadership. Being as the stock has recently fell by roughly 20 percent, Baker suggests buying now.

The Blackstone Group : The New York City-based asset management company invests in a lot of social media companies, Baker said.

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Trader disclosure: On Feb. 2, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Karen Finerman owns (MSFT), (JPM), (HPQ), (GOOG), (C), (BP), (AAPL) and (BAC). Joe Terranova owns (VRTS), (C), (UPL), (GM), (PEP), (MS), (LTD), (CVI), (CVE), (SU), (CPX), (CNQ) and (POT). Steve Cortes owns (SVU), (MO), (EXC) and U.S. Treasuries. Steve Cortes is short (BAC). Steve Cortes is short (LVS). Stephen Weiss owns (TBT), (AMSC), (QCOM), (MSFT), (HPQ), (SMCI), (PZN), (IPI), (AGU), (BTU), (MEE), (DVN), (COP), (HK), (EMC), (FWLT), (VZ), (FAS) and (JPM).

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KAREN FINERMAN
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JOE TERRANOVA
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MARY ANN BARTELS

SIMON BAKER
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ANTHONY SCARAMUCCI
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DEBORAH WEINSWIG
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