Shares of Facebook (FB), Twitter (TWTR) and LinkedIn (LNKD) fell sharply last week and investors are wondering if social media companies have entered a bear market. LinkedIn stock dropped 13% last week, Twitter lost 8.8% and Facebook slipped more than 5%.
“You can categorize them as crowded-longs or hedge fund favorites," says Yahoo Finance’s Michael Santoli.
There’s also a psychological element to the selloff -- investors are beginning to feel we’re in a bubble and are embarrassed to own stocks like Facebook, says Yahoo Finance's Jeff Macke.
Last week there were a lot of reminders that smart money wasn’t aggressively buying right now, points out Santoli.
“The market has to find its footing in some other areas before these things become the obvious bet again,” he says.
On Friday value plays also took a hit. So has the market reached a top?
“I think the market is anxious and that’s encouraging,” says Santoli. Earnings season, which kicks off this week, is probably okay because expectations are low, he says.
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