Despite the reopening of the economy and resumption of outdoor activities, the demand for social media platforms is increasing rapidly. Social media users have increased 9.9% over the past 12 months to 4.55 billion in October. According to Global WebIndex…
57.6% of the world population now uses social media. Furthermore, the global social networking platforms market is expected to reach $939.68 billion by 2026, registering a 25.4% CAGR .
Social media platforms gained immense popularity during the height of the COVID-19 pandemic because people were forced to physically distance themselves from others and turned to social media as a means of staying socially connected. The adoption of social media platforms is still increasing for entertainment purposes and to stay connected with people worldwide for business, education, health, and other works that can be done virtually. Investors’ interest in social media stocks is evidenced by the Global X Social Media ETF (SOCL) 8.2% returns over the past year.
Wall Street analysts expect quality social media stocks Snap Inc. (SNAP – Get Rating), Twitter, Inc. (TWTR – Get Rating), and Bumble Inc. (BMBL – Get Rating) to gain significantly in the near term. Therefore, we think these stocks could be solid additions to one’s watchlist.
Snap Inc. (SNAP – Get Rating)
Popular messaging app and camera company, SNAP, needs no introduction. The Venice, Calif.-based company offers Snapchat and camera applications with functionalities, and had more than 514 million monthly active users as of July 2021.
Last month, SNAP and Google partnered to launch “Quick Tap to Snap.” The partnership created a camera-mode version of SNAP that will be accessible directly from a phone lock screen. SNAP believes that the lock screen integration on the Google Pixel 6 phone is key to making SNAP more innovative and faster for its users.
SNAP’s revenue for the third quarter, ended September 30, 2021, increased 57.3% year-over-year to $1.07 billion. The company’s net loss decreased 64% from its year-ago value to $71.96 million. Its adjusted EBITDA grew 209.1% from the prior-year quarter to $174.2 million. Also, the company’s loss per share declined 64.3% year-over-year to $0.05.
Analysts expect SNAP’s revenue for its fiscal year 2021 to be $4.02 billion, representing 60.4% year-over-year growth. The company has an impressive earnings surprise history; it beat the consensus EPS estimates in each of the trailing four quarters. Its EPS is expected to increase 700% in the current year.
The stock has surged 28% in price over the past year. Closing the last trading session at $53.17, the $75.88 average analyst price represents a 42.7% potential gain.
Twitter, Inc. (TWTR – Get Rating)
Popular social media platform provider TWTR in San Francisco is a multinational technology company that enables people to connect virtually. In the third quarter, TWTR’s daily active users in the U.S. totaled 37 million, and it had more than….
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