On Thursday — the first day of trading after Facebook filed for its IPO — investors went into overdrive. Here’s a look at the gains in social stocks yesterday: Company Ticker Price Gain Zynga ZNGA $12.39 +17% Groupon GRPN $23.08 +7% LinkedIn LNKD $76.98 +6% Pandora P $13.32 +3%
It’s a good bet that some of the moves came from short covering. This means short sellers — who are betting on a stock price to fall — were closing out their positions, which involves buying back stock. It adds even more fuel.
At the same time, the Facebook filing shows how the company is certainly the uber player in the space. Take a look at the recent financials (these are annual figures as of the third quarter of 2011): Read