Shares of Facebook (NASDAQ:FB) traded higher after their earnings report beat the analysts expectations for revenue and earnings.
On the surface the earnings appears to be positive and investors pushed the price of the shares to the best level in two weeks before the tides began to turn.
Continue Reading Below
Throughout the session the stock began to fade and turned negative by the early afternoon.
The weakness in shares of Facebook has spread to other social media stocks and the Global X Social Media ETF (NYSE:SOCL)was getting hit harder than shares of Facebook.
The top holding in SOCL, making up 13 percent, is Facebook.
But it was its peers that were underperforming with LinkedIn (NYSE:LNKD) and Zynga (NASDAQ:ZNGA) leading the way lower. The ETF is now down nearly 20 percent from the high set in March.
See also: Are Gold ETFs Currently A Buy?
The First Trust U.S. IPO Index ETF (NYSE:FPX) has a 9.2 percent weighting in Facebook and the stock is the largest holding in the portfolio.
Even though the only true technology stock in the top ten holdings of the ETF is Facebook, it has not been able to avoid the selling.
The ETF is down six percent from its March high even though it has been trying to rally over the last week.
Another IPO ETF that that Facebook making up nine percent of its portfolio is the Renaissance IPO ETF (NYSE:IPO). Due to the ETFs heavier exposure to the technology stocks the performance was lagged that of FPX. The ETF is down nine percent from the March peak.
A tech-heavy ETF that is down 14 percent since March and has an 8 percent stake in Facebook is the PowerShares NASDAQ Internet ETF (NYSE:PNQI). The stock is the fourth largest holding and joins other tech giants in the portfolio.
The selling in Facebook and its peers has had a direct affect on PNQI.
2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.