Facebook Rallies and 4 Social Media Stocks See Action
Facebook, Inc. (NASDAQ:FB) shares rallied on Monday, closing above $25 for the first time in four months. Also, analysts noted the company’s near-term growth potential. The stock rose 8.09 percent to $25.94 and closed at its highest since late July in the midst of upbeat outlooks of the company’s ability to grow revenue.
LinkedIn Corporation (NYSE:LNKD) has begun to shut down its LinkedIn Events application today, and it is evident that the events industry isn’t happy about this move. The events side of the app was used primarily as a marketing element for many B2B event organizers and as a revenue generator due to its ability to highlight upcoming events. However, YC-graduate startup Lanyrd hopes that it will have the ability to fill the gap today via the integration with LinkedIn and by loosening its previously strong ties with Twitter, allowing a registration outside of the social network.
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Groupon, Inc. (NASDAQ:GRPN): Recently, calls have flown off the shelves on Groupon, according to data compiled from the International Securities Exchange (ISE), Chicago Board Options Exchange (NASDAQ:CBOE), and NASDAQ OMX PHLX (PHLX). Over the the past 50 sessions, specifically, traders purchased to open 422 calls for every 100 puts on the stock. Additinally, this call/put volume ratio of 4.22 ranks in the 96th percentile of its annual range, which shows that calls have likely been scooped up over puts at a faster clip only 4percent of the time during the last year.
Pandora Media, Inc. (NYSE:P): According to Ellen Shipley, although her hit song “Heaven Is a Place On Earth” was played almost 3.2 million times on Pandora, she earned only $39 from the station. Digital Music News published her statement, causing a flood of angry comments claiming that Pandora has not been paying songwriters fairly. However, the Internet radio provider does pay for the performance of songs streamed by its listeners, but it doesn’t pay the songwriters directly. Instead, Pandora pays ASCAP, BMI, and SESAC, which are the performance rights organizations, or PROs, who is supposed to then pay their publisher and songwriter members their fair share of the money. Shipley is a member of BMI, and the song is registered there as well as ASCAP because her co-writer, Richard Nowels, had registered his share of the song at ASCAP. The check for $39 that was made payable to Ms. Shipley came from BMI. Although the licenses are confidential, Pandora must pay, according to credible sources, including a Vice President at ASCAP, nearly 4.5 percent of its gross revenues to ASCAP, BMI, and SESAC collectively. As of now, Pandora is earns $100 million each quarter, of which it must pay nearly $4.5 million to the PROs, all of whom pay their songwriter members 50 percent and their music publisher members the other 50 percent after taking their admin fees.
Zynga, Inc. (NASDAQ:ZNGA) saw a $.03 or 1.4 percent increase, to $2.35.
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