Investors called it off with social media stocks and ETFs after Facebook Inc. FB and Twitter Inc.’s (TWTR came up with a poor earnings show. But the recent selloffs took care of overvaluation issues to a certain extent, bringing the high-flying stocks down close to the fair value level.For example, P/E (ttm) of Twitter was 113.7x versus industry P/E of 32.2x. However, P/E (F1) of the stock now stands at 44.8x versus industry P/E (F1) of 36.4x.Facebook Falls Flat After Q2After the closing bell on Jul 25, Facebook disappointed investors with second-quarter 2018 results. The social media giant missed the Zacks Consensus Estimate for the first time in nine quarters for earnings and in 13 quarters for revenues.Plus, the social media giant provided a downbeat outlook for the second half of the year, suggesting that the slowdown in revenue growth will continue and expenses will rise faster than revenues. Since the releasing earnings, Facebook’s shares have lost about 19.6% in two days (as of Jul 27, 2018) (read: Facebook Shares Tank on Awful Q2 & Outlook: ETFs to Watch).Twitter Collapses Post EarningsShares of Twitter plummeted, losing about 20.8% in the key trading session on July 27, marking the steepest one-day plunge in shares since 2016.The company’s quarterly earnings were in line with estimates while revenues beat the same. However, what really affected shares was an unexpected decline in monthly average users (MAU) and weak guidance amid overvaluation concerns.Monthly average users declined from 336 million in Q1 to 335 million in Q2. Twitter indicated that its monthly active users will fall further as it continues to delete fake accounts. The company expects adjusted third-quarter EBITDA margin to lag the second-quarter level.Why to Buy the Dip?Both stocks come from a top-ranked Zacks sector (top 31%). VGM Score of Facebook is impressive at B and it hails from a top-ranked Zacks industry (top 37%). Twitter too has a VGM Score of B and is placed in a top-ranked Zacks industry (top 42%).Investors should note that the reason behind the decline MAU appears to be a restructuring effort as both Facebook and Twitter have been under the eye of regulators due to misuse of accounts. Facebook too will continue to invest heavily in security and preventing abuse, video content and long-term growth initiatives.This means both companies’ long-term prospects look promising. The latest cleaning-up process should bode well for the companies over the long term. Some of metrics of the duo look lucrative when compared with the industry statistics.Investors should note that these stocks have heavy exposure to social media ETFs, which were also hit hard and should now offer relatively cheaper valuation. Moreover, a basket approach minimizes the company-specific risks to a large extent.ETFs in FocusTwitter and Facebook’s results will likely have a considerable impact on Global X Social Media ETF SOCL. Both take about 22% of SOCL, holding the top two positions. At the current level, SOCL carries a Zacks ETF Rank #3 (Hold) with a High-risk outlook. The fund was down 4% on Jul 27 (read: Facebook Slump Drags Down Tech ETFs: Any Winners?).First Trust Dow Jones Internet Index Fund FDN, with about 10% exposure to the duo, shed about 3.1% on Jul 27 but has a Zacks ETF Rank #1 (Strong Buy). Invesco NASDAQ Internet ETF PNQI also invests about 10% of its portfolio in the both stocks. The fund was off about 2.3% on Jul 27 and has a Zacks ETF Rank #1.iShares U.S. Technology ETF IYW has about 8% exposure to the duo with Facebook taking the lion’s share. The fund fell about 2% on Jul 27 and has a Zacks ETF Rank #2 (Buy) (see all Technology ETFs here). Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Facebook, Inc. (FB): Free Stock Analysis Report PWRSH-ND INTRNT (PNQI): ETF Research Reports FT-DJ INTRNT IX (FDN): ETF Research Reports GLBL-X SOCL MDA (SOCL): ETF Research Reports ISHARS-US TECH (IYW): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report