Seeking Alpha

Internet momentum stocks sell off as Twitter soars

  • Even as Twitter blasts off to a $25B valuation following its much-hyped IPO, U.S. and foreign Internet stocks are giving back some more of the massive 2013 gains that have led many names to trade at steep multiples.
  • One sign investors in this space are in a profit-taking mood: Zillow (Z -4.3%) and YY both sold off yesterday in spite of delivering Q3 beats (I, II) and above-consensus guidance; Zillow is adding to its losses today. Likewise, SouFun (SFUN -5.4%) has turned negative after providing a Q3 beat and strong guidance.
  • Notable U.S. decliners: FB -2.4%. LNKD -2.8%. GRPN -4.7% (reports after the close). ZNGA -2.7%. P -3.8%. TRLA -5.4%.
  • Notable foreign decliners: BIDU -2.4%. QIHU -6.7%. SINA -5% (generally viewed as the Chinese Twitter). DANG -6.2%. VIPS -7.7%. RENN -4.2%. AMAP -4.7%. CTRP -5.7%. YOKU -5.6%. RENN -4.2%. YNDX -5.1%. MELI -2.4% (plunged yesterday thanks to a Q3 miss). SIFY -2.6%.
  • Internet/social media ETFs: FDN, PNQI, SOCL
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Comments (16)
  • Philip Marlowe
    , contributor
    Comments (1065) | Send Message
     
    Looks like twitter is attracting all the dumb money.
    7 Nov 2013, 11:51 AM Reply Like
  • sglaney
    , contributor
    Comments (58) | Send Message
     
    Its only dumb money if you don't win.
    7 Nov 2013, 06:57 PM Reply Like
  • bfstrog
    , contributor
    Comments (74) | Send Message
     
    move along... this is not the bubble you're looking for
    7 Nov 2013, 11:52 AM Reply Like
  • King Rat
    , contributor
    Comments (724) | Send Message
     
    Until Groupon and Facebook, not since 1999 had anybody who generally does not actively invest asked me whether or not they should invest in those IPOs. Then again with Twitter.

     

    Dumb money indeed.
    7 Nov 2013, 12:08 PM Reply Like
  • oldorv
    , contributor
    Comments (426) | Send Message
     
    time will tell but yeah, TWTR looks like a dumb buy to me...i'll consider it when it inevitably gets down into the 20s.

     

    of course, I've been wrong before [often].
    7 Nov 2013, 12:37 PM Reply Like
  • Bouchart
    , contributor
    Comments (780) | Send Message
     
    TSLA and SCTY also down big.
    7 Nov 2013, 12:37 PM Reply Like
  • pacofrank
    , contributor
    Comments (5) | Send Message
     
    Twitter higher price that Facebook ,Facebook making more money each month, Twitter never made money and never will make as much as Facebook Come on who the big players cashing in on this.
    7 Nov 2013, 01:15 PM Reply Like
  • daxs9170
    , contributor
    Comments (6) | Send Message
     
    price does not equal market cap. facebook has a higher market cap.
    7 Nov 2013, 02:52 PM Reply Like
  • pacofrank
    , contributor
    Comments (5) | Send Message
     
    Just a long time Invester that in most part invest like W.B. and play around with tech.
    7 Nov 2013, 01:15 PM Reply Like
  • WmHilger1
    , contributor
    Comments (1139) | Send Message
     
    It looks to me like a bubble is brewing in this sort of stocks --- Facebook, Zillow, Linkedin, Twitter, Square, etc. Many naive investors seem to be pulling their money out of staid, boring money-making companies and buying these pie-in-the-sky stocks. NOT ME!

     

    They mostly continue to burn through money while gaining in price. There are a few that are actually making money at present, but I don't want to own any of them when their bubble bursts due to eventual customer apathy, and they hit the ground with big THUDs! I have seen enough bubbles over the years, especially internet bubbles, that I think I recognize one here!
    7 Nov 2013, 02:25 PM Reply Like
  • al roman
    , contributor
    Comments (6672) | Send Message
     
    No after hours sell off still +72.65%.
    Twitter did earn some wings today.
    7 Nov 2013, 07:53 PM Reply Like
  • User 13499912
    , contributor
    Comment (1) | Send Message
     
    TWTR worth 20B? How much money do they make? $0. Sell till your hands bleed.
    7 Nov 2013, 08:39 PM Reply Like
  • Chiipy-Nostradamus
    , contributor
    Comments (99) | Send Message
     
    TWTR is pullling losses at this time, while FB was profitable all along and revenues, income, and % of revs from mobile are increasing. The TWTR concept is good, but any comments on the quality of the management ? FB has a Steve Jobs-esq CEO going for it. A flawless IPO launch (such as for TWTR) is a good start?....but is this company really worth more than $20 B ?
    7 Nov 2013, 10:54 PM Reply Like
  • mirage12
    , contributor
    Comments (98) | Send Message
     
    If only SA could actually set up TWTR on their site. Would be nice to be able to search the name.
    8 Nov 2013, 12:44 AM Reply Like
  • haleiwahu
    , contributor
    Comments (3543) | Send Message
     
    When compared with other companies worth $20B and their assets, what does TWTR have to compare? Potential? Looks like a hype-bubble to me!
    10 Nov 2013, 11:20 AM Reply Like
  • Justin Giles
    , contributor
    Comments (1633) | Send Message
     
    $TWTR Surges 72% On IPO: History Shows A Drop Is Coming, With Downside Risk Of At Least 15%: http://bit.ly/1d6wfCR

     

    If you can get shares to short I would recommend shorting Twitter to low $30's, high $20's. Agree/disagree?
    10 Nov 2013, 08:46 PM Reply Like
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