These are not the go-go days of 2013, at least not yet, when the Global X Social Media Index ETF (NasdaqGM: SOCL) surged 64%, but the social media exchange traded is clawing its way back to respectability.
After rising almost 0.4% Thursday on volume that was about triple the trailing three-month average, SOCL is up 4.3% over the past month, a performance that is nearly seven times better than the Nasdaq Composite over the same period.
SOCL’s modest rally needs some confirmation from its marquee holdings, including Tencent Holdings (OTC: TCEHY), Facebook (NasdaqGS: FB), LinkedIn (NYSE: LNKD) and Twitter (NYSE: TWTR). Those stocks combine for nearly 40% of the ETF’s weight. [Social Media ETF may be Ready to Socialize]
As investors familiar with Internet and social media stocks well know, things can change on a dime with these names. Fortunately for SOCL, the recent changes have been for the better.
Fortunately for SOCL, those big-name Internet stocks have recently been driving the ETF higher. Chinese Internet giant Tencent Holdings (OTC: TCEHY) climbed 8% Thursday on almost triple its average daily volume, extending its one-month run to 8.4%.
Twitter is starting to perk up with a gain of 2.3% over the past week while Facebook is up 5% over the same period.