The technology industry, specifically the social media sector, has revolutionized the way people communicate, consume content, and interact with one another in the digital age. Social media platforms like Facebook, Twitter, Instagram, and LinkedIn have become integral parts of our daily lives. They influence not only personal connections but also business, marketing, news, and entertainment. The rapid growth of social media has been driven by widespread internet adoption, the proliferation of smartphones, and an increasingly connected global population. As a result, social media has become a highly influential and economically significant sector within the tech industry.
Investing in social media stocks offers exposure to an industry characterized by rapid growth, changing user behaviors, and a continuous stream of innovative features and services. Companies in this space, such as Meta Platforms (formerly Facebook), Pinterest (NYSE: PINS), and Snap, generate revenue primarily through advertising and, to a lesser extent, data analytics, and other services.
While the social media landscape can be highly competitive and susceptible to regulatory scrutiny, these stocks offer potential growth opportunities for investors. As they capitalize on their vast user bases and expand into new markets or verticals, such as e-commerce, virtual reality, and content creation. Investors interested in social media stocks should consider the unique risks and rewards associated with each platform. As well as broader trends in digital advertising, user engagement, and emerging technologies. Considering this, let’s look at two trending social media stocks to watch in the stock market today.
- Meta Platforms Inc. (NASDAQ: META)
- Snap Inc. (NYSE: SNAP)
Meta Platforms (META Stock)
First up, Meta Platforms Inc. (META), formerly known as Facebook, is a social media company. In brief, the company operates a range of platforms, including Facebook, Instagram, WhatsApp, and Messenger. In addition to its core social networking offerings, Meta is focused on advancing technologies in virtual and augmented reality through its Oculus and Portal products.
On Wednesday of this week, Meta reported better-than-expected first-quarter 2023 financial results. Diving in, the company notched in Q1 2023 earnings of $2.64 per share with revenue of $28.6 billion. This is in comparison with Wall Street’s consensus estimates which were earnings of $1.96 per share on revenue estimates of $27.6 billion.
Since the start of 2023, year-to-date, shares of META stock have rallied 92.53%. Meanwhile, following this earnings beat, META stock is up 14.71% during Thursday’s afternoon trading session at $240.16 a share.
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Snap (SNAP Stock)
Next, Snap Inc. (SNAP) is the parent company of Snapchat, a multimedia messaging app popular among younger demographics. Snap has diversified its offerings by introducing innovative features such as augmented reality filters, Snap Map, and Discover.
Today, Thursday, Snap will release its first quarter 2023 financial results. In detail, Snap is set to report its 1st quarter 2023 earnings results Thursday, April 27, 2023, after the U.S. stock market closes. For a brief refresher, last quarter SNAP posted Q4 2022 earnings of $0.12 per share with revenue of $1.3 billion. Moreover, in its shareholder letter, the company said it expected 1st quarter 2023 revenue in the range of $956.5 million to $1.04 billion.
Continuing on, year-to-date, shares of SNAP stock have recovered by 18.42% so far. With that, ahead of Thursday’s power hour trading session, SNAP stock is trading higher on the day so far by 6.07% at $10.48 per share.
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