Stay away. As the current barbs about Facebook’s IPO fly and as GroupOn takes a dive with its stock closing in on single digits, the Social Media helium craze is drifting further away from the accountable reality of advertising performance.
Tech stars Google and Apple haven’t escaped the hammering of late by the pundits that are blinded by the hope of social media or even mobile media.
They are all wrong.
The reality check that follows tracks the opening price for the above mentioned companies and the Dow Jones and NASDAQ averages. It may not be a precise measure, but it points out the underlying value placed on these firms by analysts and the public at large.
Since the opening stock price on May 18th (the first trading day for Facebook) and the closing price on May 30th the result that follows sends a strong signal and a vote for value creation vs. value deterioration.
Apple: up 8.5%
Google: down 5.9%
Facebook: down 33.0%
GroupOn: down 11.1%
Dow Jones: down 1.9%
NASDAQ: up 0.8%
While the averages remain relatively unchanged, Google tries to keep pace while the pure play social media darlings are clobbered. The clear winner in this “race” … Apple.