Zynga Avoids Hack and 4 Social Media Stocks See Action
Facebook, Inc. (NASDAQ:FB) released an update to its iOS app for iPhones, iPads, and iPod Touches featuring Instagram-like filters. In May, Facebook launched Facebook Camera, which was mere months following it announced intentions to purchase Instagram. Facebook Camera is very similar to Instagram, since it includes photo filters and a picture-based news feed. The most recent features that are included in the social network’s iOS app are complete replicas of those on Facebook Camera.
LinkedIn Corporation (NYSE:LNKD) has a market capitalization and enterprise value of about $11 billion, a forward price toe earnings ratio around 85, and a EV/EBITDA around 100, making it very expensive. The company is believed to deserve a forward-looking premium because it is a social network. However, LinkedIn has a bigger premium than Facebook (NASDAQ:FB), which has a forward P/E and EV/EBITDA in the 30′s.
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Groupon, Inc. (NASDAQ:GRPN) will report its Q3 earnings on Thursday after stock market close. The company’s stock is only slightly higher than its all-time low, and it faces concerns regarding its ability to grow along with worries concerning if its business model is sustainable or not. Analysts, including Jeff Houston of Barrington Research, expressed concerns regarding Groupon’s outlook for the current quarter, mostly because of Superstorm Sandy, which harmed many small businesses in the northeastern U.S., and the continuing economic issues in Europe. The amount of active customers Groupon had as of the end of the quarter is very important. Other than revenue, investors also focus on Groupon’s gross billings, which measures the amount of money it collects from customers prior to paying merchants.
Pandora Media, Inc. (NYSE:P) sued the organization representing songwriters and composers in hopes to gain lower license fees for playing their songs. Pandora, also lobbying the U.S. Congress for lower royalties on recordings, requested that a federal court in New York to set “reasonable” license fees from the American Society of Composers, Authors and Publishers through 2015. Pandora is attempting to obtain a blanket licensing fee covering all songs that are represented by the 435,000-member group. The radio service stated that the current fees prevent profitability. Ascap and Pandora did reach an “experimental” fee agreement in 2005, which ended in 2010. The arangements’ terms weren’t revealed in the filing.
Zynga, Inc. (NASDAQ:ZNGA): Neither Facebook or Zynga saw their websites removed on November 5. The hackers promised online attacks would be executed by the Anonymous hacktivist collective. Anonymous uses the trademark Guy Fawkes mask, used in the film “V for Vendetta, and Novermber 5 is well knows as the Guy Fawkes Night holiday, which is celebrated annually in Britain. Several Anonymous factions promised that they would take down various websites, presumably through the distributed denial of service (DDoS) attacks. Additionally, they threatened to release a broad swatch of Zynga’s mobile games for free, but there were no signs of foul play.
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