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 (NasdaqGS: 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 (NasdaqGM: PNQI) and represents nearly 3% of the ETF’s portfolio.
Groupon is also held in Global X Social Media ETF (NasdaqGM: SOCL), which has been hurt by weakness in shares of Facebook (NasdaqGS: FB) since the recent IPO.
The sell-off on Groupon on Tuesday spread to other newly public firms in the social media space such as Angie’s List (NasdaqGS: ANGI), Yelp (NYSE: YELP) and Facebook, MarketWatch reported.