How to Trade the Return of Social Media Stocks – Daily Reckoning

Growth is good.

This week, we’re seeing growth in some unusual places.

Gross Domestic Product screamed higher during the second quarter after slumping during the unusually cold winter months. Of course, no one really saw that coming. GDP rose 4%, smashing analyst estimates as Americans bought cars and appliances at the fastest pace in almost five years, Bloomberg reports.

Oh, and we’re starting to see some real growth in social media companies’ bottom lines. And as you’ve probably already guessed, no one saw that coming, either.

Yelp Inc. (NYSE:YELP) reported its first profit ever as a public company Wednesday afternoon. The online review leader earned $2.7 million during the second quarter, compared to a loss of a little less than $1 million last year.

And Yelp isn’t the only trendy social media name bolstering its bottom line. Earlier this week, Twitter Inc. (NYSE:TWTR) announced earnings of 2 cents per share, along with huge revenue and user growth. Just when analysts and investors turned their backs on the stock, it smashes expectations and jumps almost 30% after hours.

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How to Trade the Return of Social Media Stocks – Daily Reckoning

See which stocks are being affected by Social Media