Momo Names In Tech Sector Remain Under Pressure As Rotation Continues, Einhorn's Comments Of 'Second Tech Bubble' Weigh
Technology and tangent social media stocks have come under pressure Monday as investors in the space may still be digesting some concerning comments from David Einhorn of Greenlight Capital. In the fund's April letter to investors, Einhorn said the market is currently witnessing a second tech bubble.
The carnage is palpable Monday afternoon:
- LinkedIn (NYSE: LNKD) has sold off around 7 percent;
- Pandora Media (NYSE: P) fell more than 5 percent, but is now down around 3 percent;
- Facebook (NYSE: FB) trading more than 2 percent;
- Twitter (NYSE: TWTR) down 3.2 percent;
- Angie's List (NYSE: ANGI) down 5.6 percent;
- Zynga (NYSE: ZNGA) down 5 percent;
- King Digital (NYSE: KING), the maker of the popular game Candy Crush, down over 8 percent;
- Google (NYSE: GOOG) down just over 1 percent; and,
- Apple (NYSE: AAPL) shares are the shining star, up over 2 percent.
Apple could benefiting from the company's announced 7-for-1 stock split and increased dividend and buyback as a move designed to help pave the way for the company to gain Dow 30 entry and recognition as a blue chip company.
Many traders will argue there has been evidence of the sentiment laid out by Einhorn in the real markets over the last several weeks: media sources, pundits and day traders alike have each pointed at a steady rotation away from momentum stocks and into more conservative blue chip stocks. Taking one of the broadest approaches possible, the SPY is up about 1.5 percent over the last month, compared to a nearly 2 percent decline in the Nasdaq.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.