When FB, Twitter, Pandora, Zinga, and Groupon went public I was following their shares just out of curiosity, since it seemed like a replay of the internet stock boom of the 90s--and we all know how that ended.
I wasn't even aware that FB shares had gotten over $200, so that was kind of surprising to me. $173.50 seems like it's still a really high valuation on a tech company that's probably never going to pay a dividend. But that's what happens with these stocks. If they miss an earnings target or lower their revenue forecasts, they get hammered. Investors are looking for a good tech story, and if they see signs of weakness in that story, they sell. FB and the rest of those tech companies are highly speculative. Not as bad as the internet companies of the 90s which had zero profits and sometimes horrible, unsustainable business plans, but speculative nonetheless.
Having said that, I don't think this is the end for social media stocks. It's probably more like a big bump in the road. The rest of the market is still raging, and unless investors start selling off everything, FB and the rest will continue upward. This is definitely a good reality check for everyone.
Prolly not yet the end. We have to see and wait how they are going to cope up with what had happened with their stocks. I really think it might be because of something we don't really know. How the price fell or what's the story behind it. I believe they'll be here in the next 5 years. We won't be seeing gone socmeds at least at that time.
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