The social media exchange traded fund was not immune to the latest market upheaval but it did rebound Thursday after Facebook (NasdaqGS: FB) surged on mobile-ad growth. Next week will also be a big week for social media sector as players reveal fourth quarter earnings.
The Global X Social Media Index ETF (NasdaqGS: SOCL) jumped 4.2% Thursday. SOCL declined 7.0% over the past week but is up 45.2% over the past year. The recent dip has set up a potential buying opportunity as social media names reveal earnings. [Social Media Slump: High-Flying ETF Swoons]
Facebook shares surged 14.5% Thursday after the company revealed a 63% increase in revenue and an eightfold increase in profits over the fourth quarter, exceeding expectations, the Wall Street Journal reports.
The Facebook report rippled through social media stocks, with Twitter (NasdaqGS: TWTR) rising 6.9%. Twitter reports earnings after the close on February 5.
“Mobile ad spend was strong for Facebook,” which “could be a read through for social ad spend in general and Twitter,” Wedbush analyst Shyam Patil told MarketWatch.
Meanwhile, Pandora (NasdaqGS: P) also jumped 11.5% after Goldman Sachs Group projected the stock could more than double in the next year, reports Andy Fixmer for Bloomberg. Pandora will release earnings on February 5 after the market close.
Yelp (NasdaqGS: YELP) saw a dead-cat bounce, gaining 5.2%. The firm will also reveal earnings after the close on Feb. 5.
On Feb. 6, Zynga (NasdaqGS: ZNGA), which gained 4.1% Thursday, and LinkdedIn Corp (NYSE: LNKD), which rose 4.0% Thursday, will show earnings.