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 FB, Twitter TWTR, LinkedIn 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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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