Sometimes, when people get the idea that there’s gold in an area they are all over it, but when enough people fail to find anything the frenzy calms down. Until someone actually manages to strike it rich, and then the whole craze re-surges.
The second wave of enthusiasm can have an effect on parties that have the potential to get a piece of the pie. Facebook, Inc. (NASDAQ:FB) shares are looking better right now, as the price is up 1.60% at $20.36 in pre-market trading.
One of the main reasons is that Yelp, Inc. (NYSE:YELP) announced earnings yesterday after the close, and investors loved it. YELP was already up 16.90% in the session, but after hours trading took it even higher.
The other very obvious factor which could have affected FB pre-market was the announcement of the Unemployment and Non Farm Payrolls numbers. With the highest number of jobs added since February, July may look like a positive sign, but at the same time the unemployment rate rose 8.3%. These numbers don’t seem to be too exciting for the stock market, as Nasdaq futures are up 1.04%.
These developments are coming hot on the heels of the commotion caused by Facebook’s user accounts problem. A filing from Wednesday revealed that about 83 million, or more than 8% of the monthly active users on Facebook, are fake or duplicate accounts.
The effect of YELP’s earnings may be seen as a light in the tunnel for many companies. To be more specific, the fact that the amazing results were driven to a large extent by mobile ad revenue, proving that it’s possible to monetize on the huge potential.
Groupon, Inc. (NASDAQ:GRPN) also got a push by YELP’s results. The price went up 1.57% in after hours trading and is now up 0.31% in pre-market trading.
