Seeking Alpha

Internet stocks tumble again; Twitter falls below IPO opening price

  • Aided by King's poor debut and general momentum stock weakness, U.S. and Chinese Internet stocks have fallen hard for the second time this week.
  • In addition to King rival Zynga and newly-minted VR headset maker Facebook, Twitter (TWTR -7.1%) is among the leading U.S. decliners. Exactly 3 months after reaching a peak of $74.73, shares have fallen below their post-IPO opening price of $45.10. They remain well above their $26 IPO price.
  • Other U.S. decliners: P -5.2%. Z -6.2%. TRLA -7%. GSVC -4.8%. SVVC -4.1%.
  • Many Chinese Internet stocks have also been hit hard. Sungy Mobile (GOMO -23.2%), which posted a Q4 beat and in-line guidance yesterday afternoon, is the biggest decliner. Others: QIHU -8%. WUBA -9.5%. MOBI -10.6%. QUNR -7.8%. NQ -7%. YOD -7.6%. WBAI -7.5%. SOHU -7%. ATHM -6.5%. SFUN -6.3%.
  • Internet/social media ETFs: FDN, PNQI, SOCL
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Comments (15)
  • benitus
    , contributor
    Comments (1962) | Send Message
     
    Happy days are here again!! TWTR is toast!! So are all those who've been ganging up on me for my honest comments about TWTR's impending demise for the past few weeks. I feel so sorry for their IRAs and whatever they were playing with. I'm not the gloating-type because it's mean to gloat, especially when others are feeling miserable but I need to remind them to be considerate of others' feelings and refrain from attacking them, just because they disagreed with others' comments. I apologize if I seem to be gloating , as I wasn't. Anyway, as I said before, all that matters is who is making money and who is not, not what was said. I'm glad to be making money from TWTR all these while with my short plays. Happy days are indeed here for me!!
    26 Mar, 04:22 PM Reply Like
  • tstreet
    , contributor
    Comments (737) | Send Message
     
    Actually, you are gloating. So what. I sold well before before this debacle because I took seriously the reports of lack of growth in active users. But it is was time to take money off the table, anyway. I continue to believe that not being too greedy is a good policy.
    26 Mar, 04:42 PM Reply Like
  • ValueinvestorEU
    , contributor
    Comments (562) | Send Message
     
    not being greedy might be a good idea for someone who doesnt really know what they are doing.

     

    for those of us who do, we are just waiting at the target that is most likely based on previous cases, even if that means we are making hundreds of thousand of dollars in the span of a few months. while of course paying attention to risk/ reward on our positions.

     

    But if you have made alot of money shorting Twitter and you therefor don't want to be greedy you will be wrong, we are only halfway
    26 Mar, 05:55 PM Reply Like
  • 22643611
    , contributor
    Comments (2101) | Send Message
     
    Yes, you are gloating.
    26 Mar, 07:00 PM Reply Like
  • Be Here Now
    , contributor
    Comments (4376) | Send Message
     
    The Germans have a word for it: schadenfreude.
    26 Mar, 11:26 PM Reply Like
  • benitus
    , contributor
    Comments (1962) | Send Message
     
    tstreet......I'm sorry if you feel that way, even though I'm entitled to gloat after all the brickbats that I had been fending before, for being outspoken on the short side, but I have no intention of doing so, simply just reminding others of the existing dangers to support TWTR, in case they are tempted to increase their long positions. Don't forget the humongous expiration of remaining lockups on May 6th. For whatever reasons that led you to your liquidation, you were wise to do so but I do caution against coming back into TWTR before the next lockup release. Live long and prosper, my friend.
    27 Mar, 07:44 AM Reply Like
  • 11146471
    , contributor
    Comments (841) | Send Message
     
    Herd-like trading today!
    26 Mar, 06:45 PM Reply Like
  • chas@cfaith.com
    , contributor
    Comment (1) | Send Message
     
    I don't get it! How can all the traders just all of a sudden decide to trash all their stocks in a few days, with no major news or changes in the market? Who decides this ridiculous action?
    26 Mar, 07:20 PM Reply Like
  • mitrado
    , contributor
    Comments (2004) | Send Message
     
    Not all... $HPQ has been on a rise.
    27 Mar, 04:19 AM Reply Like
  • ValueinvestorEU
    , contributor
    Comments (562) | Send Message
     
    You didnt complain when alot of the highfliers undeservingly rose to 100 times their fair price did you?

     

    This is nothing compared to what will eventually happen, you will see examples of companies that fall to 1/100th the price they are trading at now, its not cheap its a bubble and it has just started to deflate, it has a loong way to go, misguided people that buy because it has fallen will get caught redhanded..

     

    sure it might not pop yet, but why try to catch something you know is not backed up by any real tangible value? if you have a propensity to do that I would suggest the roulette in a casino it got vastly better odds than alot of the highfliers which are the stocks being hit right now.
    27 Mar, 04:35 AM Reply Like
  • benitus
    , contributor
    Comments (1962) | Send Message
     
    chas....haven't you heard about Twitter withdrawing its music service from iTunes and their intent to introduce their own music service next week? Further signs of desperation before the next lockup expiration on May 6th. Expect more desperate moves before then. Their vain attempt to enter the China market was thrown onto the rocks, as I had foretold before. Live long and prosper, my friend.
    27 Mar, 07:48 AM Reply Like
  • Nicholas Pardini
    , contributor
    Comments (423) | Send Message
     
    Momo's are toast along with the market as a whole. Real economy is slowing, tapering = tightening, and the Fed will lose control of inflation or the bond market if they try to reinstate QE now. As for why they went down so fast is because a lot of trader are either using tight stops or own the stocks are margin. Swift price movements cut out stop orders and force margin calls on weak longs in any of these names.
    26 Mar, 07:33 PM Reply Like
  • TruffelPig
    , contributor
    Comments (4091) | Send Message
     
    LMAO. REALLY. Talk to you after you have been wrong again.
    26 Mar, 10:50 PM Reply Like
  • Econ Student
    , contributor
    Comments (218) | Send Message
     
    This is healthy. If we never had small corrections then there would be another 50% drop a few years from now. The market can't keep going up 30% like last year on multiple expansion. It's fairly valued so the S&P should only go up by how much earnings go up.
    27 Mar, 12:19 AM Reply Like
  • 22643611
    , contributor
    Comments (2101) | Send Message
     
    TWTR's PE is only 4600!
    Now that's a value stock. . .
    27 Mar, 02:42 PM Reply Like
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