Potentially Brutal Day Awaits Social Media ETF

The Global X Social Media Index ETF (NasdaqGS: SOCL) has been down this road before. That road being the first trading day after a hot new addition to the ETF’s lineup delivers its first set of quarterly results as a public firm.

That day is today for Twitter (NYSE: TWTR) and if Wednesday’s after-hours action is a guide, the social media stock is in for a rough Thursday. After the close of U.S. markets Wednesday, Twitter reported an adjusted fourth-quarter loss of 2 cents a share on revenue of $243 million. Wall Street expected a loss of 2 cents a share on revenue of $218.1 million.

Although the company forecast first-quarter revenue of $230 million to $240 million, above the $215.2 million analysts are expecting, the shares were down 17.6% as of 6PM Eastern time Wednesday.

Twitter was not the only SOCL holding offending investors after Wednesday’s close. A slack first-quarter outlook from Pandora (NYSE: P) sent that stock down 9.4% in after-hours trade.  Twitter and Pandora were SOCL’s fifth- and sixth-largest holdings, respectively, as of Feb. 4, combining for over 12% of the ETF’s weight, according to issuer data.

Shares of Yelp (NYSE: YELP) rose almost 8% in Wednesday’s after-hours session. At a weight of 5.39%, Yelp could help SOCL absorb some of Pandora’s loss today, assuming both stocks act inline with what was seen Wednesday evening. Pandora is 5.8% of SOCL’s weight. [ETFs Wait on Twitter’s First Earnings Report]