SOURCE: Paragon Financial Limited

Paragon Financial Limited

June 13, 2012 08:20 ET

Social Media Industry Continue to Struggle After Facebook IPO

The Paragon Report Provides Stock Research on LinkedIn and Groupon

NEW YORK, NY--(Marketwire - Jun 13, 2012) - The recent Facebook IPO was supposed to be a boom for the Social Media Industry, instead valuations of the five major social media stocks have fallen by over 25 percent. "After Facebook, investors will be gun-shy about dealing with these stocks," Singular Research's Robert Maltbie explained. "People will think of the business model, not the buzz." The Paragon Report examines investing opportunities in the Social Media Industry and provides equity research on LinkedIn Corporation (NYSE: LNKD) and Groupon Inc. (NASDAQ: GRPN).

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The day of Facebook's IPO the 5 major companies in the industry -- Facebook ($82 billion), LinkedIn Inc. ($10.2 billion), Groupon Inc. ($7.45 billion), Zynga Inc. ($5.2 billion), and Yelp Inc. ($1.14 billion) -- had a total valuation of approximately $106 billion according to data from FactSet Research. Three weeks after the offering total valuations have dropped over 25 percent to 77 billion, with Facebook suffering the biggest loss dropping to $56.3 billion. "They see Facebook going down and they're depressed," Wedbush analyst Michael Pachter said of investors.

Paragon Report releases regular market updates on the Social Media Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at and get exclusive access to our numerous stock reports and industry newsletters.

LinkedIn connects the world's professionals to make them more productive and successful. With 161 million members worldwide, including executives from every Fortune 500 company, LinkedIn is the world's largest professional network on the Internet. According to a recent Reuters article more than 6 million customer passwords were stolen and were put up on underground sites frequented by hackers.

Groupon is a local e-commerce marketplace that connects merchants to consumers by offering goods and services at a discount. Shares of the company have fallen nearly 50 percent year-to-date. The company's lock up period ended on June 1, 2012.

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