The world of social media and public companies has had a wild ride recently. Take a look at Facebook, Zynga and GroupOn who have lost billions in market value. Here are their recent closes and 52 week highs to give you some perspective.
- ZNGA had a Thursday close of $3.18. The 52 week high is $15.91.
- FB had a Thursday close of $26.84 and has dropped to $23.12 as of the writing of this post. The 52 week high is $45.
- GRPN had a Thursday close of $6.61. The 52 week high is $31.14.
Not all of the stocks that they like to call ‘social media’ stocks have been going down. LinkedIn is not too far off from it’s 52 week high. The difference is quite simple, no matter what they business or how ‘cool’ you many think it is, it has to make money. The recent changes in stock price and valuations of each company are due to their business models and revenue. Always do your own research before considering purchasing a company no matter how fun or cool you think their products and services are.