Market Overview

What Sector Does Doug Kass Hate?

What Sector Does Doug Kass Hate?

They are some of the hottest names on the market. However the president of Seabreeze Partners, and the market itself, are not huge fans.

When asked about his most-hated sector on Benzinga's #PreMarket Prep, Doug Kass paused for a moment and came back strong: social media.

"I think that the entire social media sector," Kass responded, "we're gonna look back and most of these stocks will decline by between 50-70 percent."

Most investors already know the major players: Facebook (NASDAQ: FB), Twitter (NYSE: TWTR), LinkedIn (NYSE: LNKD).

"I think that the beta earthquake that we've seen, the decline in all these high-beta, high-octane stocks since early March is a strike across the Dow and foreshadows weakness ahead," said Kass.

Related: How Will Gnip Help Twitter Grow?


Facebook's peak for the year came on March 10, closing at $72.03. It has dropped 13 percent since, closing at $60.46 on Friday.


The micro-blogging site's inability to "substantially" grow its user base and keep users engaged seemed to worry investors. Since a huge spike down on February 6, Twitter has seen its stock continue to gradually fall.

Twitter has dropped over 30 percent since February 18, closing at $39.02 on Friday.


The king of business-networking was fairly consistent throughout the second half of 2013, but has seen a steady drop since early December. Its peak close for 2014 came back on January 16 at $230.56.

Since March, the stock has dropped a huge 27.6 percent and closed at $147.73 on Friday afternoon.

"As I said [earlier in the interview], the notion of the size of addressable market has replaced eyeballs in 1999. It's a dangerous situation," concluded Kass.

Posted-In: #PreMarket Prep Doug Kass Facebook LinkedIn social mediaNews Top Stories Interview Best of Benzinga


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