Internet stocks hit following disappointing earnings, Alibaba filing

Has irrational exuberance given way to panic selling? Internet stocks are off again today, as the Street registers disappointment with earnings reports from AOL, Groupon, Zulily, SouFun,, and King.

Yahoo (YHOO -6.2%) has fallen below $35 as the Street digests Alibaba's IPO filing. Twitter (TWTR -4.4%), crushed yesterday following its lockup expiration, briefly cracked $30 before rebounding a bit.

Other decliners: QIHU -8.9%. BITA -7.2%. GOMO -7%. TRLA -5.2%. MELI -4.7%. ANGI -4.6%. Z -4%. YOKU -5.5%. CTRP -5.3%. WUBA -5.3%. JOBS -5.1%. GRUB -4%.

Internet/social media ETFs: PNQI, SOCL, FDN

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Comments (15)
  • Guy in Ithaca
    , contributor
    Comments (428) | Send Message
    I don't think it has anything to do with the Alibaba filing.
    7 May 2014, 12:14 PM Reply Like
  • Eric Jhonsa
    , contributor
    Comments (1276) | Send Message
    Agree for stocks other than Yahoo. Selloff seems to be due to earnings and a general risk-off investor mindset.
    7 May 2014, 12:22 PM Reply Like
  • Rasna
    , contributor
    Comments (104) | Send Message


    This has everything to do with perception and investors rolling to Value, Profit and Good Earnings and away from Growth/Momentum companies with little or no profits, high multiples and more "risk".


    The S&P has been in a trading range, with a few dips, for almost 3 month. If we breakout and start to trade toward 1900, we'll be OK for a while. If we break down, it will present better buying opportunities.


    The bull is getting long in the tooth and investors are nervous. Therefore the rush to value. Investors with a longer view will reap rewards for holding or building positions in companies like $GILD, $FB and $YHOO, to name a few.
    7 May 2014, 12:20 PM Reply Like
    , contributor
    Comments (438) | Send Message
    Irrational Exuberance?


    Almost all tech stocks are loaded with 50% value (cash + earnings), and 50% hope (future cash and earnings). Some people would call the later part "Blue sky."


    As soon as the hope "dims," that 50% can disappear quickly, or in the case of the 2000 crash, 90% disappeared.


    If there is one outlier, I would say it is LinkedIn. They are a real business, with steady paying members and advertisers who want to reach the people with money, and influence. Even though their stock has taken a beating, I would bet on LinkedIn. (No I have no position in LinkedIn).


    My insight is what I charge for it.
    7 May 2014, 12:29 PM Reply Like
  • bestlab
    , contributor
    Comments (3) | Send Message
    "(No I have no position in LinkedIn)" Does a double negative mean that you DO own LNKD ?
    7 May 2014, 02:15 PM Reply Like
  • domingolnavarro
    , contributor
    Comments (7) | Send Message
    There is only so much money in the market. It moves around as it seems.... The Big money, it moves in a swarm, leaving nothing on the branch once it evacuates on the "undervalued" pickings. Tee hee hee....
    7 May 2014, 12:31 PM Reply Like
  • martell
    , contributor
    Comments (189) | Send Message
    mr. guy in Ithaca on said would you buy alibaba shares? said so is it time to snap up ALIBABA? VOTE IN OUR POLL AND LET US KNOW WHAT YOU THINK WOULD YOU BUY ALIBABA SHARES 55% PRESENT OF THE PEOPLE VOTE SAID YES 27% of the people said no and 18% of the people said not sure total votes was 5,420 people
    7 May 2014, 01:42 PM Reply Like
  • 22643611
    , contributor
    Comments (2099) | Send Message
    I think the only thing supporting TWTR all the shares being borrowed short
    7 May 2014, 02:46 PM Reply Like
  • Andreas Hopf
    , contributor
    Comments (19999) | Send Message
    Excellent YHOO purchasing opportunity.


    Over a year ago, ABABA was rated for $75bn, then $100bn, then $150bn and finally $200bn. Why not $500bn? That would make ABABA's "failure" @ "a measly" $109bn even more obvious. The stock market still makes for the best comedy.
    7 May 2014, 06:08 PM Reply Like
  • benitus
    , contributor
    Comments (3473) | Send Message
    Market for internet stock was confusing yesterday. Too much good news and too many bad news mixed together, and nobody knows what to do, so probably safest way to go is to get out and wait for the smoke to clear. No reason for good stocks to crash. Also, I think Alibaba is very much over-valued. If not for Softbank's support and Yahoo's involvement, I would short this stock whenever I get the chance because it will definitely lose 50% of its value, after a year or so. That's my take on Alibaba, from the gut. Live long and prosper.
    8 May 2014, 08:56 AM Reply Like
  • domingolnavarro
    , contributor
    Comments (7) | Send Message
    Be careful. All those hot IPO's six month later are down significantly. Ill wait for something like what happened with FB before I'll even consider it. That company is good for the China and Asia story, which is where growth is expected to outpace other regions. Latin America to do same also. I have my doubts as to it taking over here in the West, where markets are different. Ours is a mature market with an aging demographic content. It's important to regard demographics in evaluating. For the Chinese and Asian market sure, but recall FB when considering. Lots of luck.
    9 May 2014, 10:29 AM Reply Like
  • Jean Smith
    , contributor
    Comments (143) | Send Message
    Has anyone any idea what the IPO price will be on Ali-Baba?????? Let me in on the secret if you know.
    21 May 2014, 06:31 PM Reply Like
  • benitus
    , contributor
    Comments (3473) | Send Message
    Regardless of the price, this stock being a Chinese company will definitely be pushed up artificially as every mom and pop on the street in China jumps into the action, so if we can't get into it from the get-go, then we should short this stock when it pauses for air, after the initial launch. The simple reason is that most Chinese are gamblers by nature, so they'll take profits once it plateaus, which means it will certainly come crashing back down. That's my take.
    22 May 2014, 12:35 AM Reply Like
  • Shaduc
    , contributor
    Comments (3005) | Send Message
    " every mom and pop on the street in China"


    the mom and pop businesses I know in Shanghai do not hav the access.
    22 May 2014, 01:02 AM Reply Like
  • benitus
    , contributor
    Comments (3473) | Send Message
    You'll be surprised at how intense the ordinary folks can get involved with so-called "popular stocks" because they are driven by the alleged fast multiplication of wealth on the stock market, even though nobody seems to talk about those who got cleaned out. They don't do it themselves but entrust those who were recommended to them with their life savings, which is ironic, because they don't normally trust their own relatives with anything to do with their savings. So long as people they know and trust testify that they're making money big-time and are flaunting their new-found wealth, they will believe anything they hear from them, even though they know nothing about the stock market or the stocks that they're dumping their life savings into. As I said, it's a social norm for the Chinese to gamble, even for the fun of it. That's why they wish each other good luck and prosperity during Chinese New Year, when kids learn how to gamble among family members. Look at the people of Hong Kong who are Chinese and the mainland Chinese are no different. The Chinese in Taiwan, Malaysia and Singapore are no different also. You don't know everything about China, so what you know don't make you an expert about China. My first visit to China was in 1986 and I was there during Tiananmen, before and after as well. My partners in China at the time were both the Communist Party and the PLA.
    22 May 2014, 09:11 AM Reply Like
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