Let me know if this sounds familiar: Equities are rising and investors are seemingly complacent, but serious cracks are showing in much-hyped Internet stocks that have gone public recently.
Groupon (GRPN) shares were down more than 26% to an all-time low on Tuesday with investors punishing the stock after a disappointing quarterly earnings report and outlook.
The beaten-down stock is held in PowerShares Nasdaq Internet Portfolio (PNQI) and represents nearly 3% of the ETF’s portfolio.
Let’s just hope it’s a coincidence as the S&P 500 tests the 2012 high and that U.S. stocks will finally break out.
Financial blog Zero Hedge on Tuesday reported that Groupon and Zynga are down 70% from their IPO price while Facebook is off 44%. Since the IPOs, investors have lost $58 billion market cap on the three stocks, according to the report.
PowerShares Nasdaq Internet Portfolio
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