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Summary
- Twitter’s revenue surged 19% to US$556 million in Q1 of 2021.
- Facebook reported US$9.49 billion in net income in Q1, an increase of 94% YoY.
- Snapchat saw 66% growth in revenue YoY to US$770 million in Q1.
Social media has become an integral part of our daily lives. When the coronavirus pandemic broke out, and the social gatherings were restricted, social media was an important medium for people to connect with the outside world.
They also had more time to interact with friends and family because of the lockdowns. Hence, the health crisis has apparently come as a boon for social media companies as they added more users to their subscriber-list.
We explore three social media stocks to find out how they performed during the pandemic.
Twitter Inc (NYSE:TWTR)
Twitter is a San Francisco, California-based company founded in 2006. The company has recently increased the word limit for messages from 140 characters to 280.
It logged revenue growth of 19% YoY to US$556 million in Q1. It also generated US$480 million from its global operations, an increase of 41% YoY.
It also earned US$137 million from data licensing and other activities during the period, up 9% YoY. CPE or cost per engagement was 19% YoY.
The stock gained 4.98% YTD.
It closed at US$57.59 on Wednesday, May 26, down 0.45%.
Also read: What drove Twitter’s Q4 Revenue to Record High?
Facebook (NASDAQ:FB)
Facebook was founded in 2004. It has 1.88 billion daily users and 2.85 billion monthly users.
Its stock price went up by around 44% YTD.
It saw a 48% growth in revenue YoY to US$26.1 billion in Q1.
In the fiscal 2020 first quarter, its revenue was US$17.73 billion. It also reported US$9.49 billion in net income during the period, an increase of 94% YoY. It was US$4.9 billion during the first quarter last year.
The stock closed at US$327.66 on Wednesday, May 26. It gained 21% YTD.
Also Read: Big Tech gets bigger in March quarter
Snapchat Inc. (NYSE:SNAP)
Snapchat is also a California based company, and it has 280 million daily users.
It has recently launched a new feature called Spotlight in 14 countries. Spotlight has 125 million users. It also launched 121 media channels in collaboration with 150 partners in multiple countries.
It saw 66% growth in revenue YoY to US$770 million in Q1. Losses reduced from US$306 million to US$287 million YoY. EBITDA shrunk from US$81 million to US$2 million YoY.
The stock closed flat at US$60.59 on Wednesday, May 26. SNAP gained around 19% YTD.
