As we come to the end of this week of trading, social media actions seem to be in focus. Thus, several factors would encourage investors to take an interest in this sector of the stock market today. For starters, social media stocks have flourished and continue to thrive amid the current pandemic. This would be the case as consumers in some parts of the world remain confined to their homes due to a resurgence of coronavirus cases. To keep busy during such times, most would turn to social media. After all, social media is a way to connect virtually with friends and loved ones. If anything, this would be the perfect way to do it in the midst of a global health crisis.
Not to mention that the growing variant of the COVID delta continues to wreak havoc across the world. According to the director of the Centers for Disease Control and Prevention, Rochelle Walensky, it is one of the most infectious respiratory diseases to date. In turn, this could provide further incentive for governments to take lockdown measures to prevent the spread of the disease. As such, most would say that social media stocks could have more room to function in the scholarship now.
At the same time, we are currently looking at a rather optimistic results season. In the aftermath of a meteoric economic recovery, many of the biggest names in tech are seeing solid numbers across the board. With people like Facebook (NASDAQ: FB) and Google (NASDAQ: GOOGL) reporting profits next week, things could heat up. Either way, as investors weigh their options, having a healthy mix of reopening and pandemic stocks could be the game. If you’re looking for the the best social media stocks invest now, here are three to watch out for this month.
We start today is Twitter Inc. In short, the California-based social media giant operates primarily through its proprietary platform of the same name. On this platform, Twitter offers microblogging and social networking services. In detail, Twitter offers users an almost instant connection to news from around the world. Considering how quickly people can provide updates and post, trends on the platform are often tied to real world events. Thanks to the company’s latest quarterly earnings report, TWTR stock now appears to be taking center stage.
Notably, Twitter posted earnings per share of $ 0.20 on revenue of $ 1.19 billion, crushing Wall Street estimates across the board. For comparison, consensus estimates envisioned profits of $ 0.07 on revenues of $ 1.07 billion. On top of that, Twitter now has over 206 million Monetizable Daily Active Users (DAUs) on average. This all adds up to total revenue growth of 74% year over year. According to analysts, this marks Twitter’s fastest revenue growth since 2014. CFO Ned Segal cited direct response and the company’s branded products, as well as updated ad formats as the main drivers of growth. In addition, Segal also noted that Twitter’s growing small to medium business segment continues to grow as well.
Overall, Twitter seems to be running at full speed now. This quarter alone, the company launched many new features on its app, including a paid subscription service. In addition, it is entering the audio chat room and financial technology markets with its Spaces and Tip Jar services respectively. Would that make TWTR’s stock a top social media stock to watch right now?
Source: TD Ameritrade CGU
Another big name in the social media industry making headlines now would be Snap Inc. The social media camera app developer offers users a more visual social networking experience through its flagship Snapchat app. Supporting Snapchat, the company also develops and complements Spectacles and Bitmoji. On the one hand, Spectacles is an augmented reality (AR) device that works with Snapchat enabling more interactive experiences. On the other hand, Bitmoji allows users to create their own personalized digital avatars that appear on Snapchat emojis. Given the unique appeal of Snap’s camera-focused social media offering, consumers and investors alike might be tapping into it now.
Clearly, SNAP stock is currently sitting on gains of over 180% over the past year. Similar to our previous entry, Snap also released strong numbers for its second quarter fiscal year yesterday. More importantly, the company saw its total revenue for the quarter soar 116% year-over-year to $ 982 million. If that wasn’t enough, the company now has 293 million DAU, marking a massive 23% year-over-year increase. Overall, CEO Evan Spiegel believes these numbers indicate the “overall strength” of Snap’s business. According to Spiegel, the company increased its revenue and DAU at the highest rate to date.
In addition to its impressive earnings report, Snap continues to expand its operations now. As of this week, the company is now working with Verishop, a digital shopping platform operator. Now, the duo are currently operating the Verishop Mini, an “organized shopping experience” that is exclusive to the Snapchat smartphone app. Overall, Snapchat appears to be shifting into high gear now, and this could be a good stock to add to your radar for potential long-term growth.
Source: TD Ameritrade CGU
Subsequently, we will examine Pinterest Inc. In a nutshell, the business primarily operates as an image sharing and social media service. A key feature of its platform would be its “scoreboards”. The likes that serve to distinguish Pinterest from its social media peers now. Thanks to these bulletin boards, Pinterest users can save, design, share and discover new ideas and concepts on the Internet in image form. Overall, all of this would serve to help people conceptualize ideas and plans, a service that has won over many throughout the pandemic.
Likewise, investors also seem to be interested in PINS stocks. The company’s shares have now risen by more than 195% in the past year. Could PINS stock be worth watching ahead of its second quarter results next week? On the contrary, Wall Street analysts seem to believe it. As it stands, consensus estimates suggest Pinterest could post total revenue of $ 560.73 million, marking a 105.8% year-over-year increase. What’s more, analysts are also forecasting a jump in earnings per share of more than 280% over the same period.
For the most part, these estimates would seem rather bold to the uninitiated. However, Pinterest continues to increase its revenue streams and optimize its existing services. The company is now harnessing beauty item search trends on its platform to create interactive e-commerce experiences for users. Namely, Pinterest uses a combination of artificial intelligence (AI) and AR in its Try On service. With Try On, users can try on makeup digitally using their phone’s camera. AI recommends AR products and layers over individual face makeup. With all of this in mind, will you be monitoring the PINS stock?
Source: TD Ameritrade CGU
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.