Facebook Struggles to Cash In Data Gold Mine and 4 Social Media Stocks See Action
Facebook, Inc. (NASDAQ:FB) users willingly provide Facebook with deeply personal information, such as likes, dislikes, their close associates, politics, religion, relationship status, etc. meaning that Facebook has multitudes of personal data, which is ideal for an advertiser. However, the company has not had the ability to fully utilize the possible fortune. Facebook makes only $1.28 per user each quarter via advertisement versus the $7 Google makes on each of its users. Additionally, Facebook’s stock’s value has be reduced to half of what it was when its trading began in May, mostly due to investors’ fears that Facebook does not have a clear path to raise the revenue it generates from its subscribers, although there are over a billion of them.
LinkedIn Corporation (NYSE:LNKD) revealed a major revamp of its site design. The changes started to roll out this week and should continue through the next few months. The new LinkedIn design has more of an emphasis on photos by making them larger, serving as focal points on the page. The design has more of a streamline, fonts have been changed, and the administrative features are more intuitive. For example, it much more simple to update profiles and search for information on the site.
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Groupon, Inc. (NASDAQ:GRPN) has repeatedly been condemned for its lack of clarity for the business. A company who is advertising on Groupon may even face a bill for the credit card fees. Groupon advertisers also forget to cap their deal size at times, which could flood them with non-paying customers, and these Groupon deals could take a few months to leave circulation. The Harvard/BU study shows that Groupon advertisers could face the effects from the deal for as long as six months, possibly adding to employee fatigue, reduced profit margin, and customer frustration due to diminishing inventories.
Pandora Media, Inc. (NYSE:P) is not very concerned regarding recent media reports that Apple has begun to develop a similar offering that has been designed to personalized music tastes. In an interview with USA TODAY at the Public Relations Society of America conference here earlier this week, Pandora founder and Chief Strategy Officer Tim Westergren stated that Apple would be “some serious competition … but we haven’t lacked for competition.”
Yelp, Inc. (NYSE:YELP) intends to punish businesses that are caught attempting to pay for good reviews by showing that the businesses made such an attempt on their Yelp profile pages, reports The New York Times. Three months following the incident, the offending businesses’ profile page will say, “We caught someone red-handed trying to buy reviews for this business,” the newspaper elaborated.
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