4 Social Media Stocks To Watch In The Stock Market Today
Social media stocks have been gaining a lot of attention in the stock market as of late. This is thanks to the world mostly communicating virtually these days amidst a pandemic. Before the age of social media, most people would get their news from the papers or scheduled TV broadcasts. Not only has social media become a prime medium for the real-time stream of information and news worldwide, but it also allows you to buy products and services directly through that platform.
We only need to look at the likes of Alphabet (NASDAQ: GOOGL) and Facebook (NASDAQ: FB) to understand how powerful social media is. Google’s YouTube contains a wealth of content that entertains many. Meanwhile, Facebook Shops is a new and free tool helping merchants create a customized online storefront for Facebook and Instagram, which can also integrate with a merchant’s Shopify (NYSE: SHOP) store. With the pandemic triggering an increase in time spent online, companies are re-adjusting their marketing strategies. With all that in mind, here are four social media stocks to watch in the stock market right now.
Top Social Media Stocks To Watch Right Now
- Snap Inc. (NYSE: SNAP)
- Pinterest Inc. (NYSE: PINS)
- Bumble Inc. (NASDAQ: BMBL)
- Twitter Inc. (NYSE: TWTR)
Snap Inc
First up, we have the trendy camera company, Snap. The company’s flagship product, Snapchat, is a camera application that allows people to communicate through short videos and images. It believes that by reinventing the camera, it would create the best outlet for people to live and communicate. SNAP stock has risen over 230% over the past year.
As the company continues to shift its focus to augmented reality (AR), it pulled off a telling win behind the scenes. Last month, the company hired Konstantinos Papamiltiadis from Facebook to become Vice President of Platform Partnerships. He will be tasked to help recruit more AR creators and encourage companies to adopt Snap’s technology into their services.
Furthermore, the company is also showing positive signs of growth in its recent quarterly report. For its second quarter, the company’s revenue came in at $982 million, up by 116% year-over-year. Also, its adjusted EBITDA improved 223% to $117 million compared to the previous year’s quarter. Not to mention, its daily active users were 293 million, an increase of 55 million or 23% year-over-year. Having a healthy increase of active users is paramount for a social media company such as Snap. All things considered, would you add SNAP stock to your watchlist?
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Pinterest Inc
Following that, we will be looking at the visual discovery engine company, Pinterest. The social media giant offers a range of Pinner products on its platform, which includes Standard Pins, Product Pins, Collections, Video Pins, and Story Pins. With all these features in place, it would serve to help people conceptualize ideas and plans, a service that appealed to many throughout the pandemic.
PINS stock has not had the best year so far. Its monthly active users in the U.S declined by approximately 5% year-over-year during its second quarter. This somewhat matters as a large portion of its monetization comes from the U.S. and a decline does not bode well with investors. However, when you take a step back to analyze these numbers, the decline should not come as a surprise. Most people were forced to stay home without much entertainment this time last year. Naturally, we saw unprecedented levels of growth in users that are not realistically sustainable.
Besides the small bump on the road for Pinterest, it still posted positive numbers in other areas. The company’s revenue grew 125% year-over-year to $613 million. Also, it turned a net loss of $100 million in last year’s quarter to a positive GAAP net income of $69 million this year. Safe to say, the company is focused on building for the long-term by transforming from a place to browse to a community of inspiring people sharing their passions and expertise. With that in mind, would you say that PINS stock is a bargain at its current price point?
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Bumble Inc
Bumble is a company that provides an online dating platform through a mobile application. Its platform enables people to connect and build equitable and healthy relationships on their own terms. The Company operates two apps, Bumble and Badoo. Bumble app is built with women at the center while Badoo focuses on building meaningful connections for everyone.
In August, Bumble announced its second-quarter earnings report. Its total revenue increased 38% to 186.2 million year-over-year. The company’s adjusted EBITDA came in at $51.9 million, compared to $32.5 million the prior year. On top of that, we saw an increase in total paying users to 2.9 million, representing an increase of 20% compared to the prior year’s quarter. The strong growth in paying users, engagement, and monetization reflects the company’s ability to effectively execute its strategic goals.
Just as many industries are having a greater presence on the internet, online dating is also gaining traction in today’s world. People around the globe have a growing desire for healthy and equitable relationships. Hence, the company’s technology and product offering would serve as a convenient outlet for people to forge meaningful relationships. Given these considerations, do you believe Bumble’s growth is sustainable? If you do, would you consider BMBL stock as a top social media stock to watch?
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Twitter Inc
Lastly, we have the California-based social media giant, Twitter. Essentially, the company’s platform offers microblogging and social networking services. Twitter provides its users with an almost instant connection to news around the world. TWTR stock has been trading sideways since the start of the year, showing gains of over 18% within the period.
Recently, Twitter announced a new feature known as “Super Follow”. This will be a new way for people to earn monthly revenue by sharing subscriber-only content with their followers, Hence, people can create an extra level of conversation to interact authentically with their most engaged followers. In detail, people can set a monthly subscription of $2.99, $4.99, or $9.99 for monetization. So, there will be more chances for people to interact with their favorite accounts.
The company also had a strong second quarter this year. Notably, the company was able to crush Wall Street’s estimates across the board. It posted revenue of $1.19 billion, an increase of 74% year-over-year. Meanwhile, its earnings per share were $0.20 compared to the consensus estimates of $0.07. Not to mention, Twitter now boasts over 206 million average monetizable daily active users. Overall, it does appear that the company is firing on all cylinders. So, would TWTR stock make it to the top of your watchlist?
