Despite the brief misstep in late summer, the social media exchange traded fund is gaining momentum on the improved earnings season and is waiting on Facebook (NasdaqGS: FB) to report later Wednesday.
The Global X Social Media Index ETF (NasdaqGM: SOCL) jumped 10.2% over the past month and is up 9.5% year-to=date.
Facebook will announce its quarterly results after the close Wednesday. FB shares were 1.5% higher late in the session on expectations that the social networking site could post strong third quarter results, TheStreet reports.
Facebook is enjoying a solid financial position with reasonable debt levels, steady cash flow from operations, rising profit margins and stock price momentum.
SOCL’s second largest component holding is FB at 10.2%.
The social media sector has been rising on strengthening earnings results. For instance, LinkedIn (NYSE: LNKD) reported better-than-expected quarterly results on both the top and bottomline last week, Forbes reported.
Moreover, LinkedIn raised its profitability outlook for the full year, citing strong demand in the company’s core business. For instance, the company is capitalizing on the strengthening mobile ecosystem, enhanced publishing network, increased number of job postings and expansion into international user base.
SOCL’s largest component holding is LNKD at 12.1%.
Global X Social Media Index ETF
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Max Chen contributed to this article.