While Twitter (TWTR) was busy rallying 72% from its IPO price today, the rest of the Internet group was getting hit hard. As shown in the chart of Nasdaq’s Internet Index below, the group had one of its worst days of the past six months today. As we enter trading tomorrow, the Index is sitting right on key support at its 50-day moving average.
Below is a list of the stocks in the Internet group worth more than $1 billion in market cap. As you can see, on average they are down 3.27% since the day Twitter (TWTR) was priced. After today’s action, Twitter now sits between Yahoo! (YHOO) and Netflix (NFLX) in terms of market cap.
Interestingly, the action we’ve seen in Internet stocks during the Twitter IPO is similar to what we saw when Facebook (FB) IPOd in May 2012. On May 17th (FB pricing) and 18th (FB IPO) of last year, the average Internet stock (>$1 billion) declined 4.62%.
There may be hope for those that are still bullish on the Internet group, however. As shown below, in the week and month following Facebook’s IPO day, the average Internet stock rallied 2.68% and 3.14%, respectively.
Copyright © Bespoke Investment Group
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