We christened earnings season this past week with Alcoa ($AA) and the market seems poised once again to make fresh highs. Of course, we could just as easily continue in the slightly upwards biased range bound channel we've been in since the end of October. Only time will tell. It has been a stock picker's market and certain stocks and sectors have taken their turns. Now is the time for social media stocks to take center stage. All covered here (with the exception of Google and Yelp) have very bullish stock chart patterns that are either flagging or are in a clear uptrend. Without further ado, let's discuss the major social media stocks in turn.
Facebook $FB (~Earnings Date: 4/22/15)
Facebook reached an all-time high on March 19th after a six-month price consolidation. It proceeded to extend the move to $86.07 and spent most of the week trickling down after a pop on Monday's big post-NFP (Nonfarm Payrolls) market reversal. It looks like it will soon go positive into earnings and will likely have a big post-earnings pop on the 22nd--likely to new all-time highs. There is also a weekly squeeze that has yet to fire. This typically lasts 8-10 bars (weeks) and is a pretty reliable indicator.
Twitter $TWTR (~Earnings Date: 5/5/15)
Rumored takeover bids helped Twitter extend to near 52-week highs before pulling back the last three days. It's experiencing a flagging setup that looks ready to push higher.
LinkedIn $LNKD (~Earnings Date: 4/30/15)
After 8 weeks of consolidation from its last earnings beat gap higher, LinkedIn had looked vulnerable but the smart Lynda.com acquisition seems to have revitalized bullish momentum. New highs appear to be coming soon.
Yelp $YELP (~Earnings Date: 4/29/15)
Yelp is getting tight and has traded in a range since its last earnings disappointment February 5th. Momentum appears to be getting bullish at least in the short term. It should have a nice pop for being tight so long. There is also a four-hour and daily squeeze that have both yet to fire which means there's a strong possibility we get that move this week. A momentum change or gap move is also likely when earnings hit.
IAC/InteractiveCorp $IACI (~Earnings Date: 4/29/15)
I've included IAC/InteractiveCorp for their social dating businesses, but they are not included in the Global X Social Media Index ETF ($SOCL*). The stock is testing 52-week highs so may have some momentary resistance, but looks strong enough to re-test the all-time high of $80.64 reached in March of last year.
Google $GOOGL (~Earnings Date: 4/23/15)
Perhaps more bullish sentiment will shine on Google once they release earnings. For now the stock is range bound and could go either way. They are making investments (SpaceX, a forthcoming paid subscription version of YouTube, etc.) to bolster and diversify their revenue. Hopefully the fundamentals will begin to support the technicals. It's a wait and see for now.
*$SOCL includes additional as well as international securities that make up a large percentage of their holdings. For additional info, please check out their site.
-- I have no positions in any stocks mentioned as of this writing.
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.