3 Buzzing Social Media Stocks: Facebook’s Mobile Ads, Pandora Faces Competition, Zynga Backs Down
Facebook (NASDAQ:FB): Facebook announced that it will renew its mobile advertisements, which have been offline for nine months after the conclusion of a trial period. The mobile advertisements provide an alternative to News Feed ads, which some Facebook users have complained clutter their experience, while providing the company a way to tap into the massive amount of data that it has accumulated through the actions of its users.
Pandora Media (NYSE:P): Pandora may have more to worry about from its newly launched competitor iTunes Radio than it previously thought. Justin Timberlake announced that the second half of his new album — The 20/20 Experience – will be available for listening on iTunes Radio before its official release Monday. Partnerships such as this one between Timberlake and iTunes Radio threaten Pandora by drawing away customers from the service, which, up to this point, has been the dominant player in the sector.
Zynga (NASDAQ:ZNGA): After previously declaring that it would not be entering the real-money online gaming business in the United States, Zynga announced that it has withdrawn its application for an online gambling license from the state of Nevada. This move is in line with its strategy, which is to focus on social gaming, including casino games, that are not based on real money.