Is Facebook's Poor Stock Performance Dragging Other Social Networks Along With It?
Facebook's stock was down 9.81 percent as of Tuesday afternoon, sending ripples of disappointment through the investment community as shareholders are trying to figure out what to do now that the world's largest social network has failed to deliver massive returns in its first few weeks on the stock market. Meanwhile, smaller networks like Groupon, Yelp, and Zynga have also felt the pain of plummeting stock. Is Facebook to blame?
Facebook’s stock was down 9.81 percent as of Tuesday afternoon, sending ripples of disappointment through the investment community as shareholders are trying to figure out what to do now that the world’s largest social network has failed to deliver massive returns in its first few weeks on the stock market. Meanwhile, smaller networks like Groupon, Yelp, and Zynga have also felt the pain of plummeting stock. Is Facebook to blame?
Reuters reporter Alistair Barr speculates that investors got spooked when Facebook underwriter Morgan Stanley’s consumer Internet analyst, Scott Devitt, announced to major clients that he was reducing his revenue forecasts for the company just before Facebook went public.
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