Social Media stocks this morning are demonstrating downright anti-social behavior, with the increasingly well-known SOCL(Global X Social Media Index, Expense Ratio 0.65%) getting clobbered for the fourth straight trading session on heavier trading volume.
SOCL has broken through its 50 day moving average for the first time since early December of last year, largely on weakness from top components Tencent Holdings Ltd. (10.78%) and SINA (9.59%) stemming from China’s broad equity sell-off, and well-known U.S. Social media barometers FB (10.21%), LNKD (9.11%), and TWTR (5.98%).
Even lesser known but in most cases relatively new listed public issues are included in the underlying index (thirty total equity holdings), such as Groupon (GRPN, 5.23%), Yadex NV (YNDX, 5.05%), Yelp Inc. (YELP, 4.71%), and Zynga (4.64%).
The mammoth GOOG is also represented in the underlying index, currently ranking as the ninth largest holding with a 4.69% weighting, and GOOG of course is throwing its daily weight around with a thumps, thuds, and bruises lately daily in terms of its impact on market cap weighted indexes it is a part of, with the stock growing to be the third largest market cap (ahead of Microsoft, GE, JNJ, CVX, and so on) weighting in the S&P 500 and the number three holding in the Nasdaq 100, narrowly behind MSFT.
GOOG of course has earnings on 1/30 after the close and the stock recently has clipped its 50 day MA as well, all ahead of earnings. It’s only Monday, but setting up for an eventful week where Social Media stocks have to be in focus (FB earnings 1/29, LNKD earnings 2/6, TWTR earnings 2/5).