Social Media

Taking a pause from social media : Analyst

Social investing put on pause

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's hard to find growth, and to some extent you've seen a lot of pricing issues out there, as well," said FBR's Daniel Ives during an interview with CNBC's "Squawk Alley" on Monday.

"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.

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"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."

Social media apps displayed on a smartphone.
Karen Bleier | AFP | Getty Images

"This is a major black eye for social media stocks, and I view it as a blip at this point," said Ives.

At mid-day trading, LinkedIn's stock price was $201.63, down 1.74 percent compared to its previous closing price while Twitter was doing slightly better, trading up 0.63 percent to $38.08.

"LinkedIn is probably the one that has the best chance," said Ives.

Ives added that the most concerning for Wall Street is Twitter.

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