Social media stocks are dropping, sending investors into doubt and panic.
On Tuesday, Facebook stocks fell by $30, marking its fourth decline in the past week of trading. It is currently the 19th worst initial public offering in the past year.
Investors are now wondering if the social networking site was the gold mine they thought it would be. Other investors are already opting out of related stocks, including Zynga.
Analysts say that investors will think twice about dealing social media stocks. Since Facebook’s IPO, the valuation of its peers and competitors have taken a dip. The whole platform has become suspect.
Still, there is some reason for optimism. Shares to LinkedIn, a top social-networking site for professionals, have shown significant increases.
According to some experts, people need to re-adjust their expectations about social media stocks. After all, too much hype can