Five social media stocks transforming the communication industry

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Five social media stocks transforming the communication industry

 Five social media stocks transforming the communication industry
Image source: 24Novembers,Shutterstock

Highlights

  • Facebook, Inc. (NASDAQ: FB) revealed plans to invest US$50 million to build a metaverse by partnering with different organizations. The stock gave a 29.44% return YTD.
  • Facebook, Inc. (NASDAQ: FB) revealed plans to invest US$50 million to build a metaverse by partnering with different organizations. The stock gave a 29.44% return YTD.
  • Facebook, Inc. (NASDAQ: FB) revealed plans to invest US$50 million to build a metaverse by partnering with different organizations. The stock gave a 29.44% return YTD.

Social media has become a popular means of networking and communication among millennials and young people today. However, it might have also contributed to people's "fear of missing out" or FOMO complex. As technology evolves, social media is likely to permeate all aspects of communication in future. Experts believe the communication sector is rapidly changing and transforming the lives of millions of people. Here we discuss the top five social media stocks that are drawing attention in the market.

Facebook, Inc. (NASDAQ: FB)

The Menlo Park, California-based social company has recently announced a “pause” to its planned launch of Instagram Kids after scrutiny from various quarters, including the government. 

In another major announcement on Monday, the company revealed plans to invest US$50 million to build a metaverse by partnering with other organizations, Reuters reported.

Facebook’s net income for the June quarter of 2021 was US$10.39 billion, with diluted earnings per share of US$3.61 on revenue of US$29.08 billion. Its cash and cash equivalents and marketable securities were US$64.08 billion as of June 30, 2021. In addition, the company’s total headcount was 63,404 at the end of the June quarter, 2021, an increase of 21% YoY. 

Facebook’s market cap is US$962 billion, and the P/E ratio is 25.28. The stock closed at US$339.61 on Sep 29. Its YTD return is around 29.4%.

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Facebook (FB) plans to invest US$50 million to build a metaverse in partnership with other organizations.

Source – pixabay

Also Read: Now, Facebook wades into Instagram Kids row, halts project: Know more

Snap Inc. (NYSE: SNAP)

Snap is a camera company. It also provides social networking app, Snapchat. Snapchat helps people communicate through short videos and images with family and friends. 

As per Q2 results, its daily average users (DAUs) increased by 23% YoY to 293 million, and the average revenue per share (ARPU) increased by 76% YoY to US$3.35. 

The total revenue was US$982.1 million, and the net loss was US$(151.7) million in Q2 2021. Its cash and equivalents and marketable securities were US$3.5 billion as of June 30, 2021.

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The California-based technology company has a market cap of US$120 billion.

The stock closed at US$71.76 on Sep 29. It gave around 59% return YTD.

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Twitter, Inc. (NYSE: TWTR)

San Francisco-headquartered Twitter is an open platform for sharing short-form text, images, and video content.

The average monetizable daily active usage (mDAU) was 206 million for the June quarter of 2021, reflecting an increase of 11% YoY.

Its revenue was US$1.19 billion, and net income was US$65.65 billion for the June quarter of 2021. The cash and cash equivalents were US$4.13 billion as of June 30, 2021.   

With a US$50 billion market capitalization, Twitter has a P/E of 133.49. The stock closed at US$60.07 on Sep 29. It rose around 20% YTD.

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Pinterest, Inc. (NYSE: PINS)

On the Pinterest platform, users can get ideas about almost anything, from food, recipes, clothing, baby products, habits to destinations for travel. 

The company plans to host its second annual global Creators Festival on October 20, 2021, across the world, including the US, the UK, Canada, Germany, France, and Australia.

Pinterest executives, special guests and top emerging creators are expected to announce their latest products, features, and experiences at the event. The San Francisco-based company’s current market cap is US$33.8 billion, and the P/E ratio is 249.81. 

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It posted revenue of US$613.2 million for the June quarter of 2021, an increase of 125% YoY. The net income was US$69.4 million, and cash and equivalents and marketable securities were US$2,143.3 million as of June 30, 2021. 

It had 2,942 employees as of June 30, 2021, and its monthly active users (MAU) were 454 million, up 9% YoY. The stock closed at US$50.37 on Sep 27. It fell around 18% YTD but gave about 34.76% return in one year.

Also Read: Cloudflare (NET), Adobe (ADBE) stocks retreat in a sea of red

Top social media stocks: Facebook (FB), Snap Inc. (SNAP), Twitter, Inc. (TWTR), Pinterest, Inc. (PINS), and Match Group, Inc. (MTCH).

Source - pixabay

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Match Group, Inc. (NASDAQ: MTCH)

The Match Group went public in 2015. It provides online dating products. The Dallas, Texas-based dating service provider has a vast portfolio, including Match.com, Pairs, Azar, Hakuna Live, OkCupid, Meetic, Tinder, and PlentyOfFish. 

The company, on Sep 22, announced to offer shares of its common stock in a registered direct offering. The number of shares and price will be determined later based on the volume-weighted average price per share during the averaging period starting Sep 24, 2021.

Its services are available in over 40 languages. It has a market cap of US$43.8 billion and a P/E ratio of 80.34. 

Its revenue for the June quarter of 2021 was US$707.8 million, and net income was US$140.5 million. The cash and equivalents were US$236.46 million as of June 30, 2021. 

The stock closed at US$152.38 on Sep 29. Its YTD gain is around 8%.

Also Read: Ford (F), Toyota (TM) stocks in focus after positive business update

Bottomline

Social media companies grew rapidly in revenue and subscriber base during the pandemic as users saw social media communications as useful during covid restrictions. However, investors must apply due diligence before investing money in the market.

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