Of course, some investors said that the selling was overdone. Panic, not a careful evaluation of social media growth prospects, fueled the selloff, bulls argued. After all, why should Twitter investors taking profits after being forced to stomach losses for the past several months indicate that LinkedIn shares were suddenly worth less?
LinkedIn has more users than Twitter and is growing at a faster rate. Facebook is an established company with more than a billion mobile users alone. And Yelp posted 65% growth in its business user accounts last quarter, a much larger percentage that Twitter, which saw its user base grow 25% in the first quarter.
Still, many investors said they would not try to catch the falling knives popping the social media bubble.
$TWTR 20's coming soon. Don't catch that falling knife-- nick jones (@mamahung) May. 6 at 03:51 PM
At the time of publication the author held no positions in any of the stocks mentioned.
This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.