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.
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