Stocks of some of the biggest social media companies pummeled significantly worrying some about the decrease of social media. Twitter, LinkedIn, and Yelp all suffered losses in Wall Street. LinkedIn shares were down by 25 percent, Twitter's by 25 percent and Yelp by 23 percent as well. These results indicate that some investors are beginning to think that investing in social media right now might be too big of a risk and this should make other social media sites to worry as well and they should start looking for ways to increase the confidence of their investors.
http://www.nytimes.com/2015/05/01/technology/social-media-punished-as-results-fall-short.html?hpw&rref=business&action=click&pgtype=Homepage&module=well-region®ion=bottom-well&WT.nav=bottom-well
1 comment:
This is a good example of capital markets in a market capitalism system. The markets can be both the "midwife" and the "undertaker," and while these companies didn't go under, they were corrected for poor performance.
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