The Global X Social Media Index ($SOCL) dropped over 2.7 percent in early trading before staging an afternoon rally to cut losses to just over 1 percent. The ETF's dive came as several high-profile websites experienced big losses on Monday. The First Trust DJ Internet Fund ($FDN) was also down, shedding over 2 percent before also staging an early afternoon rally that cut losses to just under 1 percent.
Pandora (P) Drops After Long Run
Shares in internet-radio company Pandora were off over 10 percent as Friday’s losses continued. Pandora was on a very strong run, going from September 4th to Thursday of last week without posting a daily loss and gaining over 45 percent during that period. However, investors showed concern on Friday about the new iTunes radio function from industry giant Apple (AAPL) . Those loses poured over into Monday as Apple announced that over 11 million new users had signed up for and used the new service.
Groupon (GRPN) Shares Drop Amid Lawsuit, Slowdown
Groupon gapped down to start trading on Monday, with losses close to 5 percent, after Investment Technology Group (ITG) researchers said the company’s August slowdown exceeded expectations. The bigger slowdown equates to percent year-over-year growth in the mid-20s rather than the 30 percent Q2 growth. Groupon also failed to convince a federal judge to dismiss a lawsuit regarding its IPO. Groupon was joined by Credit Suisse (CS) , Morgan Stanley (&MS), and Goldman Sachs (GS) , the companies that issued the IPO, in the defense. The lawsuit, led by individual investor Michael Carter Cohn, alleges that Groupon used improper refund accounting in the run-up to its IPO.
Yelp (YELP) Plummets
Internet review site Yelp saw shares plummeted over 8 percent in early trading before joining the rest of the market’s afternoon comeback to cut losses to just over 5.8 percent. The drop comes amid news that 19 reputation enhancement companies would be paying fines to the city of New York for posting fraudulent Yelp reviews.
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