The Facebook effect: Social media stocks sink
On the day Facebook went public other social media stocks have begun to drop like flies.
Social media companies such as Zynga, LinkedIn, Groupon and Pandora that went public in the last year began Friday with some poor results, each seeing its stock price drop in the same fashion that Facebook stock began the day.
Zynga, the social gaming site that relies on Facebook for the bulk of its users, was the biggest early loser. It saw an all-time low for its shares, at one point hitting $7.10, according to Yahoo Finance. Zynga went public at the end of last year when it opened at $9.50.
Pandora also had a poor start Friday after Facebook trading began. The online radio company at one point fell more more than 7% off its opening Friday price to $9.80. Pandora, which went public last June, closed at $10.44 Thursday. It’s all-time low is $7.83.
Groupon also saw a drop Friday morning. The social discount company fell to $11.33 Friday, but has slightly climbed back up.
Since going public in November, Groupon has only seen its stock tank, and its practices have recently become the target of a Financial Industry Regulatory Authority probe.
Among the few social media stocks that have had success since going public is LinkedIn, but it too suffered a bit on Friday. The social network geared toward professionals saw its lowest price in a week, slipping to $96.60 at one point. But it quickly recovered and was back up around $103.
And if you want to count Google by virtue ofGoogle+, it too saw an early dip. After closing at about $622.68 Thursday, Google fell to $615.11 in early Friday trading. But it was also able to rally and was back at around $621 later.
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