Investors are eager for Facebook to start trading later this
week, and money is already pouring into social-networking stocks.
Stocks in the industry are up by an average of 5 percent today,
according to our new
analysis tool (see partial screen shot below). That makes it the
strongest group of the session so far, as the broader market churns
with a gain of less than 0.5 percent.
Renren, often touted as China's version of Facebook, rallied 10
percent and is leading the group higher. The company reported
better-than-expected earnings and revenue yesterday afternoon,
fueled by a surge in online gaming.
Zynga, which makes social-networking games including Facebook's
FarmVille, is also leaping by almost 8 percent as investors champ
at the bit for the Mark Zuckerberg's company to go public.
FB originally expected to sell shares for $28 to $35, but raised
that range to $34-38 last night amid huge investor demand. That
translates into a total valuation of about $100 billion.
The stock will join researchLAB's list of social-networking stocks
as soon as it begins trading. Despite major volatility in most of
the names, the group has outperformed the market so far this year,
with a 21 percent gain.
(Screen shot courtesy of
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