Social Stocks: These Companies Tripped Yesterday and Couldn’t Get Up
Facebook (NASDAQ:FB) and other social media companies took a beating on September 24, and for some the plummet is continuing. The world’s largest social network seems to have caught itself by the collar and only dropped 2.45 percent on September 25, but the plunge on Monday stirred up a heap of investor worries that were only just settling in the prior weeks.
Groupon (NASDAQ:GRPN) was down 7.21 percent on Tuesday and is trading around $4.68. The company recently acquired discount restaurant reservation provider Savored for between $15 million and $20 million. Groupon’s story this year through September 24 is one of 73 percent loss in share value.
Zynga (NASDAQ:ZNGA) closed down 4.08 percent. Investors are singing a sad song about the social gaming company’s exodus of talent and 68.89 percent loss in share value this year through yesterday. Angie’s List (NASDAQ:ANGI) continued to fall, dipping below $11 on Tuesday before recovering slightly to $11.10. Yelp (NYSE:YELP) was also hit pretty hard on Monday, but has stabilized. Chinese social networking platform Renren (NYSE:RENN) is also down again, at $3.92 per share.
It’s clear that social stocks will remain unstable for a while. Facebook, as the flagship, is still trying to figure out meaningful monetization and the ecosystem of of social companies that revolve in the industry are largely tied to its success. If Facebook can’t pull it off, what hope does Zynga have?
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