Seeking Alpha

Internet stocks closing with losses following Netflix reversal

  • After opening higher in sympathy with Netflix, high-flying U.S. and Chinese Internet stocks are closing lower in sympathy with the streaming giant, which is down 8.2% after trading up over 10% AH yesterday in response to its Q3 numbers.
  • In addition to Groupon, which has been stung by an ITG Research note, U.S. decliners include Facebook (FB -1.9%), LinkedIn (LNKD -1.7%), Yelp (YELP -2.3%), Zillow (Z -2.5%), and Trulia (TRLA -1%).
  • Chinese decliners include Baidu (BIDU -1.6%), Sina (SINA -2.9%), Qihoo (QIHU -3%), Ctrip (CTRP -2.1%), and NQ Mobile (NQ -3.5%).
  • Chinese e-commerce plays Vipshop (VIPS -3.7%) and LightInTheBox (LITB -4.9%) are also lower. In addition to the general selloff, they appear to be getting hurt by Dangdang's Q3 warning.
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Comments (9)
  • danbre1
    , contributor
    Comments (33) | Send Message
     
    Does today's decline reflect the Oct. 30, 3rd quarter earnings outlook? 2 days in a row of red ink. What is the message here?
    22 Oct 2013, 04:19 PM Reply Like
  • pacer2799
    , contributor
    Comments (3) | Send Message
     
    danbre1, fb is up 98% for the year & 175% from the low. I would bet that fb's 3rd quarter will be the best quarter to date. Just my opinion.
    22 Oct 2013, 06:05 PM Reply Like
  • futuretrade
    , contributor
    Comments (869) | Send Message
     
    I'd be willing to bet that as soon as we see the next earnings report, we'll see the price POP! I might have to BUY a little more at these low prices.
    22 Oct 2013, 04:48 PM Reply Like
  • BuyToSell
    , contributor
    Comments (226) | Send Message
     
    I believe this issue extended beyond Internet stocks. I was watching 1 minute charts at the time this occurred and nearly every stock in my tracker, including oil and gas, apparel, and consumer stocks was hit with a sudden and sharp downside reversal. There was no news nor any other apparent cause for the decline, which seemed to be very broad in the market. CNBC remarked about it, and one analyst theorized that a sell algorithm was out of control, but no one seems to know exactly what caused it. Regardless, it was distressing, as many stocks that were heading upwards lost momentum from it, due to soured sentiment. I hope someone figures out what caused it.
    22 Oct 2013, 06:06 PM Reply Like
  • TruffelPig
    , contributor
    Comments (4097) | Send Message
     
    That dip was very pronounced, yes.
    22 Oct 2013, 06:37 PM Reply Like
  • rnn
    , contributor
    Comments (277) | Send Message
     
    Its called selling.
    22 Oct 2013, 06:21 PM Reply Like
  • al roman
    , contributor
    Comments (8762) | Send Message
     
    China & Gold ?
    22 Oct 2013, 07:44 PM Reply Like
  • Islandtime
    , contributor
    Comments (30) | Send Message
     
    The Icahn effect.
    23 Oct 2013, 12:40 AM Reply Like
  • BuyToSell
    , contributor
    Comments (226) | Send Message
     
    Still doesn't explain why they all got hit at exactly the same time: approx 10:30 am. The analysts are trying to explain it as changing sentiment but it all seems the work of one actor.
    23 Oct 2013, 09:30 AM Reply Like
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