Tuesday, August 21, 2012

Zynga, Pandora Boost Social Stock Tracker

The Social Stock Tracker had a nice performance last week, gaining 2.3%. The total value of the index reached $34.93 billion.

The big winner was social game-maker Zynga (NASDAQ:ZNGA), which posted an 11% gain as the company launched its online gaming platform. The platform should help improve the user experience as well as allow for more opportunities to monetize things, such as by allowing games from third-party developers.

Internet radio company Pandora (NYSE:P) also was a standout, with the stock up 8% for the week, though the company didn’t have much in the way of interesting news. However, the company will release its earnings Tuesday.

Finally, Yelp (NYSE:YELP)�pulled off a strong IPO, jumping 64% in its first day of trading. Once the company accumulates a full week of trading data, Yelp will be included in the Social Stock Tracker.

Yelp actually is valued at about 17 times revenues, which is a little rich. Keep in mind that the average P/E for the Social Stock Tracker is 11, with companies like Angie�s List (NASDAQ:ANGI) and Groupon (NASDAQ:GRPN) trading around 8 times earnings.

Tom Taulli runs the InvestorPlace blog IPO Playbook, a site dedicated to the hottest news and rumors about initial public offerings. He also is the author of �The Complete M&A Handbook”, �All About Short Selling� and �All About Commodities.� Follow him on Twitter at @ttaulli or reach him via email. As of this writing, he did not own a position in any of the aforementioned securities.

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