This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Is This Social Networking Beatdown Proof of a Tech Bubble?: StockTwits

Stocks in this article: FB TWTR LNKD YELP BIDU SOHU YOKU

NEW YORK (TheStreet) -- Maybe China was the canary in the coal mine.

Social networking high fliers Facebook  (FB), Twitter  (TWTR), LinkedIn  (LNKD) and Yelp  (YELP) each tumbled 4% or more by 2 p.m. after rising early Monday morning. The moves followed a sharp drop in shares of Chinese Internet companies such as Baidu  (BIDU), Sohu.com  (SOHU) and Youku  (YOKU).

$DIA $SPY $QQQ $IWM from green to red. #Marketintrouble -- Le$ (@lcc007) Apr. 28 at 01:25 PM

At first, the selloff in the Chinese Internet sector seemed a contained reaction to disappointing earnings from Sohu.com and the Chinese government's decision to halt online streaming of popular American television shows. But as the selling spread, it became clear that investor concerns about Internet company valuations extend beyond firms based in Beijing.

At its intraday market cap of $140.6 billion, Facebook trades at 30 times expected 2015 earnings. And it has one of the lowest price-to-earnings ratios in the social networking group. LinkedIn trades at roughly 60 times expected 2015 earnings. Yelp has a price-to-2015-earnings multiple of 145. Twitter trades at nearly 182 times estimated 2015 earnings.

My god it's raining momo's!! LOL it's a bloodbath out there. Remember, short $iwm and long $bp!!!! $fb $twtr $goog $nflx $pcln $qqq $spy -- Alejandro (@ElevatedTrading) Apr. 28 at 01:26 PM

Talk of a tech bubble has grown in recent weeks. Greenlight Capital's David Einhorn told the Wall Street Journal last week that tech was in its second bubble in fifteen years. He said he had shorted a bunch of "momentum stocks." On StockTwits.com, the word "short" is increasingly seen in the streams of social networking companies.

$SPY Been busy this morning here is update re-shorted at $187.50 Shorted $LNKD based on breakdown at $152 shorted $FB after I covered at $57 -- Mark Cunningham (@adventure2010) Apr. 28 at 12:08 PM

$FB nice short shaping up. -- Anshul mittal (@Headcrabz) Apr. 28 at 01:55 PM

Sentiment on LinkedIn stands at 51% bearish, according to StockTwits analytics. However, sentiment on Facebook and Twitter is overwhelmingly bullish.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs