Facebook’s User Saturation PROBLEM and 2 More Social Media Stocks to Watch

Facebook, Inc. (NASDAQ:FB): ComScore estimates that U.S. unique visitors to Facebook dropped by around 700,000 M/M in May to 158M. This falloff, which comes after a small dip in April, is new substantiation that the social networking site’s American usage is approaching a saturation point, though international users (less valuable) are still growing quickly. In other news, Argus is together with Evercore in beginning coverage with a Hold, and showing concern regarding mobile monetization.

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Pandora Media, Inc. (NYSE:P): A significant column in the New York Times reviews the debut of new competition for Pandora from Spotify and Songza. The article addresses the idea that Songza’s manually-created playlists might be more effective than Pandora’s algorithm-based tactic for providing the kind of music a user wants to listen to. Shares of Pandora traded down $0.85 (7.21%) recently at $10.94.

Zynga, Inc. (NASDAQ:ZNGA): According to an interview with Peter Moore, Chief Operating Officer of Electronic Arts (NASDAQ:EA), published yesterday by Kotaku, the video game industry is enduring an “unbelievably difficult transition” and the traditional outlook of “when the new consoles come out, everything is going to be fine again,” no longer holds. Shares of Zynga traded down $0.19 (3.23%) recently at $5.70.

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