Despite the fact that we have gotten to the point where a person without an active life on social-media is considered nonexistent, and where a well constructed online persona is more powerful than a person’s actual features, it seems that, shockingly, social-media stocks are not so popular on Wall Street.
After quarterly reviews were reported from most of the social media companies things are not looking good for Twitter, Linkedin and Yelp, who have formed a trio of unpopularity on the stock market this week.
While these companies have clearly been oversold, as it appeared that they would be successful on the stock market, the results were not what everybody was expecting.
Shares for LinkedIn went down more than 20%, that means a whopping $52, in after-hour trading after the company released its less-than-satisfactory quarterly revenue report, which looked much worse that financial analysts had expected.
The same fate was suffered by Twitter’s stocks value, that decreased by 24% after the data regarding its first quarter’s review was accidentally released in a tweet, ironically. The information got out one hour before the close of trading and it was down, down, down for Twitter from there.
After facing so many setbacks in the last months, things are not looking good for Twitter. After facing countless incidents of cyber-bullying, that led a lot of people to stop using the service all together, the company was still trying to get back on its feet.
Some financial analysts find Twitter to be extremely relevant at the moment, but the only thing that they believe could get the company back on the right track would be if it were bought by a larger company like Google.
As for the third member of this trio of bad luck, Yelp, its stock value plummeted by 22%, making it just as much in danger as the other companies.
This means that while the companies still have fairly good revenue, there is no profit to be made from these stocks, because there amount of new users for these social-media household names is unsatisfactory.
The only social media that Wall Street still deems a good investment is Facebook, whose popularity has lost none of its potency and who is getting more and more users on its mother-website and on apps, such as Instagram, which is one of the most popular photo-sharing media environments of all time.
Facebook remains the titan of social media and its future is still looking bright, financially at least, as it has become intertwined in everyday life everywhere, thus being an essential figure of the current generation. But Facebook aside, social-media stocks are not so popular on Wall Street anymore.
Image Source: medicalnewstoday.com
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