Watch stocks you care about
The single, easiest way to keep track of all the stocks that matter...
Your own personalized stock watchlist!
It's a 100% FREE Motley Fool service...
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of review-based website Angie's List (Nasdaq: ANGI ) were looking for a fix today, falling as much as 19% on what appeared to be a tandem play after Groupon's (Nasdaq: GRPN ) earnings report came up short.
So what: Social media stocks were down across the board as Facebook (Nasdaq: FB ) dropped 4% and Yelp (NYSE: YELP ) fell 5%, while Groupon got hit the hardest with a 25% drop. Investors were particularly concerned with Groupon's slowing growth, which could signal general saturation on social media platforms. Still in the red after nearly 20 years, Angie's List is particularly susceptible to these concerns as it will need to grow its top line appreciably if it hopes to turn a profit. The company posted a disappointing earnings report of its own last week as net income dropped 44% to -$23.4 million for the quarter.
Now what: Of the recent social media stock IPOs, Angie's List is the worst in my opinion. The company is still a money pit after nearly two decades in business, and seems particularly vulnerable to Yelp, which offers free access as opposed to Angie's List's subscription-based model, and should therefore generate more content from its users.
If there's ever been a stock shouting "RUN" at investors, this is it.
If you're a jilted Facebook investor who's wondering if it's time to cut your losses, I recommend taking a look at our brand-new in-depth premium report on the social networking king. Our top tech analyst will present you the opportunities and risks in Facebook's stock as well as all the other important details you need to understand this juggernaut and where it's going. Best of all, it comes with a year's worth of updates so you can stay on top of any developing stories and quarterly reports during Facebook's first year as a public entity. All you have to do is click right here to get started today.