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Facebook, Inc. (FB) Message Board

  • noexcept4 noexcept4 Feb 13, 2013 7:33 AM Flag

    Both Facebook and LinkedIn have created a rare "global network effect,"

    Both Facebook and LinkedIn have created a rare "global network effect," Benchmark Capital general partner Bill Gurley said Tuesday on CNBC.

    "I don't think anything about how LinkedIn monetizes is threatened by mobile. The transition from one platform to the other is seamless for them, whereas it's a little bit tougher for Facebook," he said.

    "Both companies, however, have something very unique," Gurley added. "They have a global network effect that crosses borders. There are very few businesses where you have that kind of network effect, and they create a pseudo-monopoly."

    On "Fast Money," Gurley revealed one reason he remained bullish on both companies.

    "I was always taught way back in my days on Wall Street, 'You never short a leader,' and so I think it would be hard to get on the negative side of either stock," he said.

    AlphaOne Capital Partners CIO Dan Nileswas also positive on Facebook, citing the social media giant's 1 billion users and the introduction of social search and e-commerce with its gifting feature.

    "I think that's the real opportunity is that they add revenue streams, just like Apple did in its early days and just like Google did in its early days.

    OptionMonster's Pete Najarian, who owns shares of Facebook, said that the valuation of both stocks appeared "extreme," but he remained more bullish on one.

    "I actually think in front of them right now, Facebook has a much better opportunity … to potentially double," he said.

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