“…Tech stock love affair turns sour…”

“…Sometimes, when a love affair ends, you can’t remember what it was you ever saw in someone in the first place.

That is the feeling of once-amorous investors who breathlessly wooed Facebook at its flotation in May and paid US$38 for the privilege of a share in the social network.

It is the feeling right now of Pandora Media investors, who paid US$16 per share for a stake in the online radio business.

It is the feeling, too, of investors in Zynga, who got shares in the online games maker at US$10.

Compare their share prices with trading yesterday: $21.01 for Facebook, a loss of 45 per cent; Pandora at $10.08, down 37 per cent; Zynga at $3.01, an 80 per cent wipe-out.

Wall St has fallen out of love with these internet stocks.

They have poisoned the prospects for others, such as Twitter or Foursquare – waiting for their stock market debut.

If excitement over these social media companies last year threatened to bring on a new dot com bubble – it shows serious signs of popping…”

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Tech stock love affair turns sour – Business – NZ Herald News.

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