3 Buzzing Social Media Stocks: LinkedIn’s Stock Sale, Facebook Draws Fire, and Yelp Proves Powerful
LinkedIn (NYSE:LNKD): LinkedIn announced that it plans to sell $1 billion worth of stock in the near future. With its share price at five times the levels of its IPO in 2011, the company is looking to raise cash for working capital and for use in investments and product development. Although the announcement did cause a slight drop in stock prices, as anticipated when a planned stock sale goes public, the company looks to remain strong and maintains its dominance in the professional networking sector.
Facebook (NASDAQ:FB): Facebook plans to include all profile pictures in its database of faces for facial recognition software. A recent rallying cry for defenders of online privacy, Facebook’s facial recognition package allows law enforcement to access tagged photos of people to perform checks related to incidents such as potential terrorist attacks. However, up until now, only tagged photos were included, so anyone who simply did not tag themselves could evade the software entirely. Under the new plan, Facebook users would have to hide or distort their faces in their profile pictures to dodge the facial recognition software.
Yelp (NYSE:YELP): A new survey from Merchant Warehouse reports that 90 percent of people are positively influenced by a good review on Yelp with 72 percent of people going so far as to say that they trust Yelp reviews as much as they would value the opinion of a friend. This comes in the wake of studies by Boston Consulting Group and Nielsen that show that the value that online reviews provide is as effective as in person reviews and can be worth thousands of dollars to business owners. This helps Yelp to build a reputation among business owners, which in turn makes the site more encompassing and more efficient.