As reported by Brent Molina the social media stocks are taking a hit.
Following a hot start after the launch of its initial public offering, Twitter shares have dipped below $40 as stocks in social media companies are plunging in Monday trading.
Twitter is down nearly 5% to $39.05 in midday trading. Facebook shares have sunk 4%, while recommendations service Yelp has dropped 8%.
Monday's decline in social stocks arrives as the Nasdaq broke through the 4000 mark for the first time since September 2000. Companies such as Facebook, LinkedIn and Yelp trade on the Nasdaq, while Twitter trades on the New York Stock Exchange.
Despite Twitter's plunge, the company's stock still trades well above its IPO price of $26, briefly hitting the $50 mark on its first day of trading. However, shares have steadily declined since mid-November.