Social Web darlings Facebook, Twitter and Groupon have collectively gained 70 percent in enterprise value since June — returns that make Google look like a utility stock or … Microsoft.
As of Dec. 1, institutional investors valued the trio at $49.7 billion, with Facebook weighing in at $41.2 billion, Twitter at $3.7 billion and Groupon at $4.8 billion. In essence, these private technology companies have become must-have holdings in the secondary market, where stock is purchased from current shareholders, like employees.
Nyppex, an advisory firm to sellers and buyers of private shares, tracked 11 of the largest social media companies in this report, including LinkedIn, Yelp and Zynga. Although a few lost momentum during the five-month window — notably Digg which fell 40 percent after a controversial site redesign — the vast majority were firmly in the black. Based on institutional bids, the group’s valuation gained 54.3 percent in the period.
The social-buying site Groupon, which recently rejected a $6 billion offer from Google, led the pack, up 303.4 percent. Such gains make their public counterparts look like stodgy, slow-growth stocks. Over the same five months, Apple added 25.8 percent, Google jumped 26.8 percent and Microsoft gained 13.2 percent.
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