The following video is part of our "Motley Fool Conversations" series, in which senior technology analyst Eric Bleeker and chief technology officer Jeremy Phillips discuss topics across the investing world.
Facebook is the hottest IPO in a decade, but what might surprise some investors is that its growth actually trails some other big tech peers. Take Facebook's fourth quarter, in which it grew revenues 55%. Gaming site Zynga, which sees almost all its sales from Facebook, moved in lockstep with its growth rate. Those are impressive figures, but still only about half the sales growth of LinkedIn. Facebook's growth even trailed the largest technology company in the world: Apple. To put Facebook's total size in perspective, its sales in the fourth quarter were less than what Apple collected in iPhone sales from their smallest U.S. partner, Sprint. All this is to say that while investors are going head over heels for Facebook's IPO and willing to pay north of 25 times sales, it's not the only company with a huge user base and relevance in the areas technology will be moving in over the next decade. If you're looking for growth opportunities in technology, there are companies out there with more ability to scale their revenue or with cheaper valuations.