Facebook Posts New Low, Other Social Media Stocks Falter (FB, ZNGA, GRPN, YELP, LNKD, CRM, MSFT, GOOG)

Updated

Today's end to the lockup period on shares of Facebook Inc. (NASDAQ: FB) has predictably weighed on the stock's share price. Shares are down more than 6% and have posted a new post-IPO low of $19.69.

Other social media stocks are also getting smacked again, with Groupon Inc. (NASDAQ: GRPN) down more than 5% and a new low of $4.97, Zynga Inc. (NASDAQ: ZNGA) down more than 2% , and Yelp Inc. (NYSE: YELP) off 1.5%. Only LinkedIn Corp. (NYSE: LNKD) has managed to maintain a positive move, up 0.5%.

The problem, at least for Facebook, has been stagnating user growth (although with 1 billion users more growth is bound to slow down) and questions about how the company will adapt (make money from) to the huge growth in mobile.

There is growth to be had in social media, but the audience is likely to be more business-oriented, where companies like Salesforce.com (NYSE: CRM), Microsoft Corp. (NASDAQ: MSFT), and Google Inc. (NASDAQ: GOOG) have acquired companies that address enterprise-level social media. These companies pose a formidable future threat to LinkedIn, and may foreclose the possibility that Facebook could play in the enterprise space. Time will tell.

Facebook shares now trade at $19.93. The previous post-IPO range was $19.82-$45.00.

Groupon's shares are now trading at $5.00 after posting a new low of $4.97. The previous range was $5.28-$31.14.

Shares of Zynga are trading at $3.00 in a range of $2.66-$15.91.

Yelp's shares are trading at $21.66 in a range of $14.20-$31.96.

LinkedIn trades at $102.56 in a 52-week range of $55.98-$120.63.

Paul Ausick


Filed under: 24/7 Wall St. Wire, Internet, Technology Companies Tagged: CRM, FB, GOOG, GRPN, LNKD, MSFT, Yelp, ZNGA

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