The Biggest Risk to Social Media Stocks Right Now

A successful hack of The Associated Press' Twitter feed led to an erroneous report that there had been an attack on The White House, resulting in injuries to President Obama. The market briefly plummeted on the fake report.

Like it or not, social media have become our default news gathering mechanism. Facebook (NASDAQ: FB  ) , Twitter, and LinkedIn (NYSE: LNKD  ) all have a responsibility to secure their networks more than they do now. Breaches move too fast not to, says Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova in the following interview with The Motley Fool's Erin Miller.

In the interim, social media monitoring services are an interesting back-up. Like an early warning system, they alert us when unusual events are making their way across the networks so that we can act to counter false claims or actively combat hacks. Salesforce.com (NYSE: CRM  ) is a leader in this space via its Radian6 business, Tim says.

Are you investing in social media? Please watch this short video to get Tim's full take, and then leave a comment to let us know which social media stocks you're betting on (or against) now, and why.

For further analysis of Facebook's global ambitions, try our newest premium research report in which we dissect the social network's expanding empire, and tell you what the company is really worth, and whether there's reason to "like" the stock for your portfolio. Access your report now by clicking here.


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