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How Social Media Affects the Market

By Abby Higgs, Staff Writer, Money Morning - September 28, 2015

Democratic presidential front-runner Hillary Clinton demonstrated exactly how social media affects the market last week when her vitriolic tweet sent the biotech sector into an 8% tailspin.

These days, a post or a picture on social media platforms like Facebook, Instagram, or Twitter can have a massive impact on U.S. markets.

We've got four more memorable examples of times when social media buzz has blown up a stock - or entire markets - for better or for worse...

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How Social Media Affects the Market

By Abby Higgs, Staff Writer, Money Morning - September 28, 2015

Democratic presidential front-runner Hillary Clinton demonstrated exactly how social media affects the market last week when her vitriolic tweet sent the biotech sector into an 8% tailspin.

These days, a post or a picture on social media platforms like Facebook, Instagram, or Twitter can have a massive impact on U.S. markets.

We've got four more memorable examples of times when social media buzz has blown up a stock - or entire markets - for better or for worse...

Alibaba Snapchat Investment Looks Too Rich

By Money Morning Member Alert, Money Morning - March 12, 2015

Alibaba announced early yesterday that it would invest $200 million in private photo messaging firm Snapchat. Estimates have the infusion of Alibaba Group Holding Ltd (NYSE: BABA) capital boosting the overall valuation of Snapchat to $15 billion.

The Only Social Media Play I'm Recommending Right Now

By Keith Fitz-Gerald, Chief Investment Strategist, Money Map Report • @kfgtotalwealth - December 18, 2014

I recently talked about the secret I wish everybody knew when it comes to market timing and discussed one of the most valuable Total Wealth tools of all - the Put/Call Ratio.

I also promised you a look at one great trade in particular involving a current social media darling. Today, I'm delivering...

If you've been with me for a while, you already know I don't like social media stocks. They're not hooked into our unstoppable trends (nope, not even Technology). Their products are "nice to have" instead of "need to have." And most of them have no real way to make money.

But that's the thing about tactics.

If you have the right trading tactics, you can squeeze profit out of any stock. Even ones you don't like.

In this case, I think betting on one stock's failure may be far more profitable than betting on its success.

I know that this may seem un-American or somehow unethical, but shorting a stock - that is, betting on its decline - is a killer tactic and can be a fabulously profitable tactic used to build your wealth.

That's a tactic we've talked about, but if you're not familiar with shorting, don't worry. I've got you covered with a special sidebar in a few minutes. So let's get back to the meat and potatoes.

The Social Media War Is Over. The Winner Is…

By Michael A. Robinson, Defense + Tech Specialist, Money Morning • @Robinson_STI - November 5, 2014

Since appearing on FOX Business last week to talk about three major tech companies - Facebook, Twitter, and Amazon.com - I've been getting a ton of questions about what the future really holds for these companies.

Especially Facebook and Twitter.

Those are probably the two best-known players in the social media sector right now.

After releasing their third-quarter earnings reports just days from each other last week, it's evident that their fortunes are starting to diverge.

While Facebook's fortunes are on the rise, Twitter is choking.

Today, I'll tell you why...

Today's Earnings Prove That Twitter (NYSE: TWTR) Stock Is Overhyped and Overvalued

By Tara Clarke, Associate Editor, Money Morning • @TaraKateClarke - February 5, 2014

Twitter (NYSE: TWTR) stock is trading 158% higher than its $26 IPO price - but that bull run could be over after today's earnings.

After market close, TWTR will report its first-ever earnings as a publicly traded company. Wall Street forecasts Twitter will lose $0.02 per share on $217.8 million in sales in its Q4 2014 report. Full-year estimates call for an earnings per share (EPS) loss of $0.19 on revenue of $639.39 million.

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Will Twitter Stock Be a Good Buy?

By Tara Clarke, Associate Editor, Money Morning • @TaraKateClarke - September 26, 2013

With Facebook stock suddenly doing well, tech investors are already getting goose bumps over the prospects for a Twitter stock offering. But whether Twitter is a buy hinges on whether the company can answer one critical question...

Read more...

Facebook (Nasdaq: FB) Banking App A Glimpse of Things to Come

By Diane Alter, Contributing Writer, Money Morning - July 16, 2012

Facebook Inc. (Nasdaq: FB) may have found another way to get its 900 million users to spend even more time on the social networking site - online banking.

According to a CNN Money report, Facebook has been working with Australia's Commonwealth Bank to create an online banking app, although the company has not made a lot of noise about the project.

Facebook began beta-testing the banking app in March, and it's expected to go live sometime later this year.

With so many people already connected via Facebook, offering a banking option may just be a logical next step. And if it succeeds, the Facebook banking app could change how people conduct transactions online.

The new Facebook app would not only allow users to conduct secure transactions with their bank, but also would enable payments to third parties and Facebook friends.

So members of the social media network who adopt the Facebook banking app will be able to pay their household bills and balance their checkbook in addition to the usual Facebook activities like uploading photos and updating their status.

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Facebook IPO: How You Could Get Shares in the $100 Billion King of Social Media

By Guest Editorial, Money Morning - February 10, 2012

For more than a year there has been rampant speculation about a Facebook IPO, and now one is finally on the way.

According to a report in The Wall Street Journal, Facebook is looking at a deal that would value the company between $75 billion and $100 billion, WSJ reported, making it one of the biggest in U.S. history.

Facebook is looking to raise as much as $10 billion, which would make it the fourth-largest U.S. IPO behind Visa Inc. (NYSE: V), General Motors Co. (NYSE: GM), and AT&T Wireless. A $100 billion valuation would make Facebook worth as much as global powerhouse McDonald's Corp. (NYSE: MCD).

WSJ reported Morgan Stanley (NYSE: MS) would be the lead underwriter, a job that could give the firm more than $500 million in fees. [But that $500 million could lose 90% of its value if this government practice is allowed to continue. Major financial companies won't be the only ones threatened, either. This will hit everyone's investments - and could devour a huge chunk out of your retirement account. Take a look at our latest free report right here for details.]

A strong performance by Facebook could test the idea that social media companies are overhyped. But before you get excited about Facebook shattering that theory, you'd do well to look at some of the other hot tech IPOs of the past year.

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