Media

Is social media's bubble bursting?

VIDEO1:3901:39
Market correction in tech?

Investors seem to be re-evaluating their expectations that social darlings can keep up their growth. Friday marked LinkedIn's worst day ever as a public company, with its stock trading down more than 20 percent. And it's one of three social media companies whose shares have dropped by nearly a quarter this week on disappointing outlooks.

It's been three days of three social giants struggling. LinkedIn was clobbered by weak guidance for the second quarter and the year. On Thursday, Yelp tanked more than 23 percent on disappointing guidance. And Wednesday, Twitter shares fell to their lowest level since January as it warned that some of its ad products aren't—and won't—generate revenue as quickly as hoped.

These dramatic stock declines are sparking talk of a top, and raising questions of what this could mean for social companies in the IPO pipeline.