Social Media Rout Crushing ETF That Rallied 64% in 2013: Options
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The rout in social media stocks is burning investors who piled into one of last year’s most popular exchange-traded funds.
The Global X Social Media ETF, which saw assets rise 10-fold last year, sank 2.7 percent yesterday, bringing its decline from April 23 to 12 percent. Among its holdings, Twitter Inc. is down 33 percent over the period, while Yelp Inc. lost 18 percent and Pandora Media Inc. slipped 21 percent. Almost 400,000 Twitter options changed hands yesterday and about 600,000 the day before as traders rushed to hedge against more losses.