With friends like these: Social stocks see sell-off on Facebook IPO day

Facebook effect status update: It’s complicated. Many tech stocks are down today, but the sharpest drops are among social-media companies as headline writers everywhere work to keep up with the fluctuation in FB amid reports of trading issues on the Nasdaq.

• Trading in Zynga shares was halted earlier today after shares of the social-games maker fell 13 percent the day of Facebook’s IPO. San Francisco-based Zynga and Facebook are friends with benefits — Zynga relies on Facebook’s multitude of users to play its games; Facebook gets revenue from those gamers’ virtual purchases. Zynga shares have resumed trading and are now down about 9 percent to $7.50 as of this post — only 2 cents higher than its all-time closing low. Zynga, maker of “Words with Friends” and “FarmVille,” went public in December with an initial offering price of $10 a share.

LinkedIn, Yelp, Pandora Media and Groupon are also down sharply. LinkedIn, the Mountain View-based social network for professionals, is down more than 2.5 percent. Yelp, the San Francisco-based reviews site, is off nearly 7 percent. Pandora, the Oakland-based Internet radio provider, is seeing a decline of nearly 4 percent. And Chicago-based online-deals provider Groupon is about 6 percent lower, amid news that a recent stock spike right before its earnings report earlier this week is being investigated by a Wall Street regulator.

 

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