Social media stocks are among the most relatable stocks to invest in the stock market today. Most of these companies provide services that people use on a daily basis. Because of this, the social media stock trade remains as relevant as ever in the stock market now. For instance, we could take a look at the blazing hot social media firm Digital World Acquisition Corporation (NASDAQ: DWAC). Since the announcement of its merger with former President Donald Trump’s media company, the stock has skyrocketed by over 890% this week as of 10:23 a.m. ET. Given the overall influence of Trump’s following, the current momentum in DWAC stock could be worth keeping an eye on.
That said, the news does come at an interesting time for social media stocks, to say the least. Yesterday, Snap’s (NYSE: SNAP) third-quarter earnings report came in short in terms of revenue. Moreover, Snap expects its revenue growth to slow in the fourth quarter due to recent changes to Apple’s (NASDAQ: AAPL) iPhone privacy rules. As a result of all this, SNAP stock is currently down by over 20% in the past month.
By and large, could this be an overreaction? Well, that depends on your take on the long-term viability of social media stocks. For those who are bullish on the matter, the current action in SNAP stock could be a buying opportunity. Alternatively, for those looking to jump on the social media stock hype train, the likes of DWAC stock may seem like a more attractive play now. By and large, all eyes seem to be on the social media industry now. On that note, here are four other notable names to know in the stock market now.
Best Social Media Stocks To Watch Right Now
- Facebook Inc. (NASDAQ: FB)
- Pinterest Inc (NYSE: PINS)
- Match Group Inc (NASDAQ: MTCH)
- Twitter Inc (NYSE: TWTR)
To begin with, we have Facebook, one of the biggest social media companies in the world. It is also one of the most valuable companies in the world and generates a substantial chunk of its revenue by selling advertisement placements to marketers. It also owns Instagram and WhatsApp, both immensely popular social media platforms on their own. FB stock is up by over 15% in the past year alone.
This week, the company launched its new digital wallet for cryptocurrencies called Novi, more than two years after it was first announced. Facebook has chosen Coinbase (NASDAQ: COIN) as its custody pilot for this new wallet. With Novi, people will be able to send and receive money abroad instantly, securely, and with no fees. Also, Coinbase says it will be storing the cryptocurrencies that Facebook will offer to users who sign up for the early test version of the Novi wallet.
There has also been talks about a major rebranding for the company. This is to reflect on its focus on building a metaverse and the name will be discussed during the company’s annual connect conference on October 28. The metaverse is a digital world where people can move between different devices and communicate in a virtual environment. This revamp could be the first step for the company as it expands over the horizon of social media and into new forms of digital entertainment. With that being said, is FB stock worth watching?
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Following that, we have visual discovery engine company Pinterest. Essentially, the platform allows users to find inspiring creators, shop for new products, and seek out ideas. Millions of users all over the world could share their ideas and find new interests through its platform.
Earlier this week, reports said PayPal (NASDAQ: PYPL) is eyeing to acquire the company for $45 billion. Buying Pinterest would enable Paypal to capture more e-commerce growth and diversify its income through advertising revenues. Should the deal materialize, it would probably be the biggest technology acquisition of the year.
Besides, the company recently revealed several updates for its Idea Pins. This includes tying them to Amazon (NASDAQ: AMZN), opening up product tagging, and integrating shopping recommendations and augmented reality try-on. Pinterest users will experience a whole new feed experience. The company will be redesigning the home feed that allows people to both consume browse-oriented content while diving deeper with a new Watch tab. With all these developments taking place, would you add PINS stock to your watchlist?
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Match Group
Another top name in the social media space right now would be Match Group. In detail, the company provides dating products through its portfolio companies which are available globally. Well, the company’s portfolio of brands includes Tinder, Match, OkCupid, Meetic, Pairs, and other brands designed for connecting people around the world. MTCH stock popped by 10.29% on Thursday’s trading session. So, let us see what prompted this movement.
For starters, Match Group will directly benefit from a decision made by Alphabet’s (NASDAQ: GOOGL) Google Play Store. Google announced that effective January 1, 2022, the company will reduce the service fee it charges for all third-party subscription apps to 15%. All this while, the commission for subscription apps is 30% for the first year, then 15% each subsequent year. So, investors believe that the company will see better profit margins with this new arrangement moving forward.
Not to mention, the company’s Tinder announced that it will be adding a virtual currency to its app earlier this month. This is to encourage users to spend more time swiping and eventually spend real money on the app. In the long run, the company expects the virtual currency to play an important role in the evolution of the Tinder experience. Given these considerations, would you say that MTCH stock is a top social media stock to watch right now?
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Twitter operates as a platform for public self-expression and conversation in real-time. It allows users to consume, create, distribute, and discover content. Twitter also provides promoted products and services, such as promoted tweets, promoted accounts, and promoted trends, which enable advertisers to promote their brands, products, and services.
Last Tuesday, the company rolled out new ad features and revamped the algorithm that decides which ads users see. This effort is to lay the groundwork for the launching of future e-commerce features. Well, the company believes the change will help Twitter to reach its goal of doubling annual revenue by 2023. However, investors will have to brace for some turbulence as Snap’s third-quarter report is shedding some light on this matter.
TWTR stock is among the social media companies that are negatively affected by Snap’s third-quarter report aftermath. Digital advertising companies as a whole received negative sentiments as Apple’s privacy changes have disrupted the advertising business. Whether it is an overreaction or not, investors are showing concerns as customers are cutting back on ad spending. That said, could this be an opportunity to buy TWTR stock on the dip?
