3 Buzzing Social Media Stocks: Zynga Tanks Despite Earnings Beat, LinkedIn Plays a Key Ad Role, and Facebook’s Stock Run Pays Off for Zuckerberg
Zynga (NASDAQ:ZNGA): Beats on both earnings per share (-1 cent, beat by 3 cents) and revenue ($188 million, beating by $2.5 million) can’t help the 15 percent plunge in Zynga’s shares. The company announced it won’t pursue real money gaming in the U.S. and analysts are clearly dismayed, as the decision removes a fair amount of upside for the shares, according to Needham. Wedbush came to Zynga’s aid, though, and a review by CEO Don Mattrick “will result in a further streamlining of operations [and] will help the company to better focus on its more immediate revenue opportunities.”
LinkedIn (NYSE:LNKD): OTR Global says that LinkedIn is emerging as an important channel in the fragmented advertising market and notes that business-to-business advertiser use is growing, although it is still mostly discretionary due to a lack of scale.
Facebook (NASDAQ:FB): In addition to giving the company an incredible burst of capital, Facebook’s market run since its second-quarter earnings call has also made founder and CEO Mark Zuckerberg an incredibly wealthy — well, wealthier — man. The stock’s leap to the 52-week high of $34.36 hiked Zuckerberg’s net worth by $3.7 billion for a total of $16.1 billion, up from about $13 billion in March, according to Forbes.