In the technology space, social media stocks are leading the charge, with a sector-related exchange traded fund pushing on to a new 52-week high.
The Global X Social Media Index ETF (NasdaqGM: SOCL) was up 1.4% Friday, hovering around its highest level since March 2014. SOCL has increased 6.5% over the past month and is up 14.9% year-to-date.
Supporting the gains in the broad social media ETF, Tencent (OTC: TCEHY), which makes up 12.7% of SOCL’s underlying portfolio, has surged, along with the broader Chinese equities markets.
Facebook (NasdaqGS: FB), which is 9.7% of SOCL, recently revealed large gains. While the company announced a 42% increase in revenue, a rising U.S. dollar diminished profits, and total costs rose 83% year-over-year on aggressive investment spending, reports Jessica Guynn for USA Today. [Social Media ETF Rebounds After Facebook Upgrade]
“We believe that investors who own the stock believe there is much unrealized potential not yet reflected in consensus estimates, and will continue to believe so,” Sanford C. Bernstein analyst Carlos Kirjner said in the article.
On Thursday, Google (NasdaqGS: GOOG), which is 4.5% of SOCL, disclosed a lower-than-expected earnings for the first quarter, but company shares still jumped in after-hour trading. The slightly lowered earnings results were largely attributed to currency risks, so revenue growth was still a healthy 17% year-over-year, excluding the impact of foreign exchange, reports Everett Rosenfeld for CNBC.