Shares of Facebook (NASDAQ:
) traded higher after their earnings report beat the analysts'
expectations for revenue and earnings.
On the surface the earnings appears to be positive and
investors pushed the price of the shares to the best level in two
weeks before the tides began to turn.
Throughout the session the stock began to fade and turned
negative by the early afternoon.
The weakness in shares of Facebook has spread to other social
media stocks and the Global X Social Media ETF (NYSE:
)was getting hit harder than shares of Facebook.
The top holding in SOCL, making up 13 percent, is
But it was its peers that were underperforming with LinkedIn
) and Zynga (NASDAQ:
) leading the way lower. The ETF is now down nearly 20 percent
from the high set in March.
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The First Trust U.S. IPO Index ETF (NYSE:
) has a 9.2 percent weighting in Facebook and the stock is the
largest holding in the portfolio.
Even though the only true technology stock in the top ten
holdings of the ETF is Facebook, it has not been able to avoid
The ETF is down six percent from its March high even though it
has been trying to rally over the last week.
Another IPO ETF that that Facebook making up nine percent of
its portfolio is the Renaissance IPO ETF (NYSE:
). Due to the ETF's heavier exposure to the technology stocks the
performance was lagged that of FPX. The ETF is down nine percent
from the March peak.
A tech-heavy ETF that is down 14 percent since March and has
an 8 percent stake in Facebook is the PowerShares NASDAQ Internet
). The stock is the fourth largest holding and joins other tech
giants in the portfolio.
The selling in Facebook and its peers has had a direct affect
© 2014 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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