The decreases in the stock prices of four main social media companies—Yelp, Twitter, Facebook, LinkedIn—since their first-quarter earnings releases reflect deeper concerns for the tech industry.
"It wasn't just a black eye for social media, a black eye for overall tech and now investors are being a little more picky going forward in terms of who they are betting on for the rest of 2015."
The future of social media companies depends on their ability to tap into mobile advertising, international markets and sub-growth.
"At this point it really comes down to mobile advertising," said Ives. "You've seen a lot of investors switch from social media to enterprise. If you contrast the enterprise earnings season we've seen versus social media which was white hot."