Facebook is Dragging Down These Social Media Stocks
Facebook (NASDAQ:FB) is down about 8 percent on September 24, and other Internet and social stocks are following it. Zynga (NASDAQ:ZNGA) has fallen over 6.5 percent in afternoon trading, as the gaming company’s fate is largely linked to Facebook’s success. Review sites Yelp (NYSE:YELP) and Angie’s List (NASDAQ:ANGI) are down almost 3.5 percent and 2.5 percent respectively. In sympathy with other social stocks taking a dive, Groupon (NASDAQ:GRPN) is down almost 2 percent.
Don’t Miss: Here’s Why Facebook is Tanking.
Social stocks are volatile at best, but Groupon may be weathering this recent storm best because of its announcement that it has acquired Savored. Savored is a leading provider of restaurant reservations, serving more than 1,000 restaurants in the United States. In synergy with Groupon’s daily deal model, diners who use Savored receive a discount to their meal, while merchants get to fill tables that otherwise would remain empty. Competitor OpenTable (NASDAQ:OPEN) has dropped over 1.5 percent on the news, as well as analyst downgrades.
Facebook is a keystone of many Internet and social stocks. Right now, much of share price is directly related to investor confidence as the stability and profitability of these companies remains questionable.
LinkedIn (NYSE:LNKD) is up slightly today, suggesting independence and resistance to Facebook’s volatility.
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