3 Buzzing Social Media Stocks: Rival Struggles Benefit Groupon, Facebook’s Early Privacy Problem, and Pandora’s Royalty Fight Rolls On
Groupon (NASDAQ:GRPN): Chief rival LivingSocial’s shuttering of its New York office is another win for the industry-leading Groupon, as the Amazon-led LivingSocial poses the largest threat to Groupon’s national dominance. The struggling daily deals site has also shuttered its Seattle offices, and requested that its employees work remotely when possible. LivingSocial posted a $50 million net loss in the first quarter.
Facebook (NASDAQ:FB): While Facebook spends a great deal of resources assuring the public that it holds privacy in high regard, that is historically not the case for the world’s largest social media site according to Mark Zuckerberg’s former speechwriter, Katherine Losse. Losse said that when she joined Facebook in 2005, customer support staffers were each handed a “master password” that allowed them to log in as any Facebook user and access all their messages and data. She did point out though that more significant measures have been implemented since then.
Pandora Media (NYSE:P): In an ongoing fight with artists and songwriters, David Lowery of the band Cracker has come forth and reported that for one million plays of the song “Low” on Pandora, he was awarded $16.89 — about the same as he would make on a single T-shirt sale, Lowery says. But Pandora’s not taking it laying down — a company spokesperson has responded, saying “Mr. Lowery’s calculations grossly understate Pandora’s payments to songwriters.” Pandora claims it “is by far the highest paying form of radio in the world…For perspective, to reach the exact same audience, Pandora currently pays over 4.5 times more in total royalties than broadcast radio for the same song.”