In a retreating market, social media and internet-related exchange traded funds stood out Friday after Twitter (NasdaqGS: TWTR) initiated talks with several large technology companies, seeking potential suitors for an acquisition.
Twitter has received expressions of interest from several technology companies and may receive a formal bid shortly, reports David Faber for CNBC.
TWTR shares surged 19.1% Friday on the potential acquisition talks.
Meanwhile, the Global X Social Media Index ETF (NasdaqGM: SOCL), which includes a large 8.9% weight in TWTR, gained 1.3% on Friday.
Other tech-related ETFs with large Twitter exposure also strengthened or at least helped offset the broader market sell-off on the acquisition talks. The Sprott BUZZ Social Media Insights ETF (NYSEArca: BUZ), which analyzes social media data to single out bullish investment perceptions on certain brands or companies, including 3.0% in TWTR, was flat on Friday. The PowerShares NASDAQ Internet Portfolio (NasdaqGS: PNQI) was down 0.1% and First Trust Dow Jones Internet Index Fund (NYSEArca: FDN) was 0.2% lower; both funds target internet-related companies. including 2.6% and 2.4% in TWTR, respectively. The SPDR S&P Internet ETF (NYSEArca: XWEB), which holds 2.1% TWTR, was also flat.
Twitter was reportedly seeing interest from big names like Google (NasdaqGS: GOOGL), Salesforce (NYSE: CRM), Microsoft (NasdaqGS: MSFT) and Verizon (NYSE: VZ), according to TechCrunch.