SECTOR UPDATE: Social Media Stocks Less Attractive To Goldman Sachs; Mixed Ratings For Twitter

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Social Media stocks are down based on the Global X Social Media Index ETF ( SOCL ) as Goldman Sachs downgrades the group to Neutral from Attractive. The SOCL, though, is up 47.2% year-to-date.

According to Barrons, Goldman's analyst Heath Terry wrote: "While we believe sector revenues will continue to outgrow the market, deliver attractive returns on invested capital, and disrupt other industries with outperformance driven by multiple expansion, we believe we are due a period of consolidation and rotation within the sector."

Goldman downgraded to Neutral from Buy shares of Trulia ( TRLA ), down 7%; Groupon, Inc ( GRPN ), down 5%; and OpenTable ( OPEN ), down 4.5%. It maintained favorable ratings on Amazon.com ( AMZN ), Pandora (P), LinkedIn (LNKD), Pricline (PCLN), and Twitter ( TWTR ).

Shares of Twitter (TWTR) are down 1.3% as research firms initiate coverage with a mixed bag of ratings today. Likely hurting shares the most today is the Underperform rating from Bank of America/Merrill Lynch. Rating shares a Buy are Deutsche Bank, Goldman Sachs while Hold-equivalent ratings came from JP Morgan and Morgan Stanley.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Commodities

Referenced Stocks: AMZN , GRPN , OPEN , SOCL , TRLA

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