Has The Coronavirus Pandemic Created Greater Opportunity For Investors And Social Media Stocks?
Social media stocks have been rising over time due to their increased relevance in our society. The rise of social media has been very successful in the 21st century. There have been many platforms over time but there are a few that are king in the US. Facebook (FB Stock Report), Instagram, and Snapchat (SNAP Stock Report) have been the leaders in social media for a long time in the United States. Social media was created and popularized in the 2000s and grew even larger in the 2010s.
With this relatively new form of media for a society coming to the frontlines, investors have looked at top social media stocks. If there is a scandal regarding a social media company such as a security breach, it can bring a social media stock down. On the contrary, if profits are up and the user base is climbing higher than normal social media stocks will rise. Many have been stuck at home causing their social media usage to rise much higher than normal. This has been a trend among a lot of digital services, not just social media.
With social media on the rise, and receiving a boost from the coronavirus, social media stocks are rising too. There are many great social media stocks to watch, not necessarily just the biggest ones. News and quarter results are both things that can drive the price of social media stocks up. So now let’s look at two social media stocks that have made a recovery in the market.
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Top Social Media Stocks To Buy [Or Avoid] During The COVID-19 Pandemic: Twitter
The first social media stock to discuss is Twitter Inc. (TWTR Stock Report) because of its recent bounce in the market. Twitter is known to most around the world by now. The company was founded in 2006 by Jack Dorsey and is one of the largest social media websites in the world. As of 2018, Twitter was at 321 million monthly active users. The website allows users to post “tweets” which are short messages sent out by a person.
Before the economic crash, TWTR stock price was at $35 a share on average. Then, TWTR fell as low as $22 a share over time. This 37% decrease in TWTR stock was due to the stock market crash. Since them TWTR stock price has risen back up. As of July 9th, TWTR stock is back to $35 a share. This is thought to be due to Twitter’s increased user base during the quarantine of 2020.
If Twitter can continue doing great, TWTR stock price will continue to rise. This means that TWTR stock has the potential to go even higher than it was before the stock market crash. Social media stocks can often be unpredictable, but what we do know is that TWTR stock is actively on the rise. It will be interesting to see where TWTR stock price goes in the future.
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Top Social Media Stocks To Buy [Or Avoid] During The COVID-19 Pandemic: Pinterest
The second social media stock to watch is Pinterest Inc. (PINS Stock Report). The company was founded in 2009 and is a large social media service used across the world. It focuses on allowing you to save and discover new ideas using images, GIFs, and videos. It does this in the form of pinboards. As of February 2019, the company was valued at $12 billion USD. Pinterest went public on April 18th, 2019 at $19 a share and closing at $24.40 a share.
Not only has PINS stock recovered, but it has also risen even higher. Pinterest’s services are being used much more which is creating momentum for PINS stock price. Before the stock market crashed PINS stock was at $23 a share on average. Then, PINS stock price fell under $13 a share. Since then, PINS stock has risen back up to $27.40 a share. This is about a 110% increase from its previous low. That is why PINS stock is a social media stock to watch.
What Now
In the world of social media new advancements are being made all the time. This allows room for new social media services to be offered. The social media platforms that were most relevant 10 years ago aren’t today. This means that there is always room for new social media stocks to enter the market. PINS stock and TWTR stock are great examples of social media stocks to watch.
