Major Selling in Social Media Stocks: Reminders of How Fast High-Flyers Can Fall
FunnyTimes.comSocial media stocks have been on fire, at least up until Tuesday. The sector should be at least somewhat immune to the market’s risk tied to a government shutdown and somewhat to a debt ceiling impasse. The problem is that…
Social media stocks have been on fire, at least up until Tuesday. The sector should be at least somewhat immune to the market’s risk tied to a government shutdown and somewhat to a debt ceiling impasse. The problem is that these insulation hopes may have some holes in them. We have been looking for news and driving forces, and it may simply be a mass exodus picking up steam.
The key ETF for social media is the Global X Social Media Index ETF (NYSEMKT: SOCL), and its shares are down more than 3% at $19.23. The daily high was $20.08, and the 52-week range is $11.81 to $20.50. We have seen very little actual news to account for the moves, but this should act as a reminder to investors who chase any hot growth sector about how fast the reversals can come and how harsh the losses can be in a short time. Here is how poorly the social media players are doing:
Facebook Inc. (NASDAQ: FB) is down more than 4% at $48.31, with a day high of $50.60 and a 52-week range of $18.80 to $51.60.
LinkedIn Corp. (NYSE: LNKD) is down 7% at $220.50, with a day high of $237.36 and a 52-week range of $94.75 to $247.56.
Yelp Inc. (NYSE: YELP) is down more than 8% at $63.82, with a day high of $70.93 and a 52-week range of $16.32 to $73.45.
SINA Corp. (NASDAQ: SINA), in China, is down more than 5.5% at $83.21, with a day high of $89.56 and a 52-week range of $41.14 to $90.75.
GSV Capital Corp. (NASDAQ: GSVC), the business development company that owns a Twitter stake, is down more than 3% at $15.07, with a day high of $15.75 and a 52-week range of $6.84 to $15.85.
Angie’s List Inc. (NASDAQ: ANGI) is down more than 4% at $15.36, and its daily high is $16.14, against a 52-week range of $8.95 to $28.32.
Groupon Inc. (NASDAQ: GRPN) is down 4.7% at $10.51, with a daily high of $11.16 and a 52-week range of $2.60 to $12.76. Is Groupon REALLY social media?
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Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
