Some are wondering if the growth opportunity in the social media stocks is over, so MoneyShow’s Tom Aspray takes a technical look at the only pure social media ETF and several stocks to determine which ones to buy and which to avoid.
The new highs in the Nasdaq Composite and S&P 500 has some worried about a major top but this is currently not consistent with the weekly or daily A/D line analysis. As we are getting into the heart of earnings season, some have been looking to the social media stocks for their winning summer trades.
That was the case until before the close on Tuesday, April 28, as at 3:07PM ET their revenue miss was tweeted an hour early so the NYSE briefly halted trading. (Twitter Shares Tumble After Nasdaq Leaks Results Early.)
The WSJ noted that “Twitter’s shares fell 18.2% on Tuesday to $42.27—their second-worst drop—mostly within the hour before the market closed. They fell another 2% in after-hours trading, altogether shaving off about $7 billion in market value.” Then, after the close on Wednesday, YELP Inc. (YELP) reported slower growth for the second consecutive quarter and it opened down almost 19% early Thursday.