Social media stocks across the stock market this week appear to be seeing some much-needed momentum. After a long streak of a downward trend, some of the top names in the industry are showing signs of promise again. The likes of Facebook and Pinterest recently provided their quarterly financials and there’s plenty to be excited about. Some investors may see this as a potential turning point as the use of social media continues to rise.
Well, one of the biggest news dominating the stock market headlines lately also involves one of the largest social media companies, Twitter (NYSE: TWTR). After all the speculations over the past few weeks, it has finally been confirmed that Elon Musk has entered into a definitive agreement to acquire the company for $54.20 per share. The company’s Board of Directors believes that this may be the best path forward with Elon’s deliberate focus on value, certainty, and financing.
Besides that, Digital World Acquisition Corp’s (NASDAQ: DWAC) Truth Social has also been gaining traction among consumers. The app was back on top of Apple’s App Store earlier this week. As a result, DWAC stock surged by more than 20% within the past week as thousands of users gained access to its full functionality. With all said and done, social media stocks seem to be back in focus. Therefore, here are some of the top names to note in the stock market today.
Social Media Stocks To Watch In May 2022
First, let us have a look at the trendy camera company, Snap. The company’s flagship product, Snapchat, is a popular camera application that is widely used by the younger generations. It helps people to communicate visually with friends and family through short videos and images called Snaps. The company also develops various innovations with a strong focus on the use of cameras.
Just this week, the company launched a fly camera called Pixy. This is a pocket-sized device that floats and orbits above the user to capture photos and videos. Videos and pictures from flights will then automatically transfer into the user’s Snapchat Memories. For each battery charge, the camera can make up to eight flights using its default flight modes. The product will be available in the U.S. and France for $229.99. This could be a groundbreaking innovation for camera enthusiasts as it may take snaps that were not possible in the past.
Financially, Snap has been showing good momentum in its business despite all the challenging operating environments. For its first quarter, the company’s revenue increased to $1.06 billion, up 38% year-over-year. More impressively, its daily active users for the quarter improved to 332 million, representing an increase of 18% compared to the prior year’s quarter. Overall, there are plenty of reasons to be excited about the future of Snap. With that said, would you add SNAP stock to your May 2022 watchlist?
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Meta, formerly known as Facebook, is a social media company that should need no introduction. It now operates through two segments, Family of Apps (FoA) and Reality Labs. As the name suggests, the FoA segment includes Facebook, Instagram, Messenger, WhatsApp, and other services. Meanwhile, the Reality Labs segment is currently working on progressing augmented and virtual reality-related consumer hardware, software, and other content. As such, many view Facebook as a strong core player that will continue to redefine the social media space.
Investors appear to be flocking to FB stock after the company announced its fiscal first-quarter earnings report yesterday. The company reported revenue of $27.9 billion, up 7% compared to the prior year’s quarter. Meanwhile, its daily active users also improved to $1.96 billion on average for March 2022, representing an increase of 4% year-over-year. All in all, Facebook continues to make progress across multiple key metrics and is confident in its long-term opportunities for growth.
Furthermore, Meta announced its Meta Store earlier this week. This marks the company’s first physical retail space that will open on its campus in Burlingame, California. Customers can get hands-on experience with all of the company’s hardware products. Hence, having a real experience with its latest technologies such as Meta Portal, Ray-Ban Stories, and Meta Quest 2. Given these positive developments, would you still consider FB stock as a top social media stock to watch?
Another trending social media company today is Pinterest. Unlike most other social media giants, Pinterest focuses on visual discovery content. On its platform, users can discover and personalize visual content called Pins. Essentially, Pins are created when creators and businesses create new content for or save existing Web content to their platform. Well, it is no secret that PINS stock has been struggling since the start of the year. Now, it appears that there may well be light at the end of the tunnel as the stock climbed by 14% on Thursday.
The company’s recent first-quarter earnings report probably played a significant role in this shift of momentum. During its first quarter, revenue improved to $575 million, up 18% year-over-year. Meanwhile, its net loss improved to just $5.3 million, as compared to $21.6 million in the same period last year. Wall Street’s estimate for its adjusted earnings per share was only $0.04 along with revenue of $573.6 million. Safe to say, its adjusted earnings per share of $0.10 crushed Wall Street’s consensus estimate with healthy revenue growth.
Another positive metric to note is its global monthly active users. The count edged up sequentially, reversing the downtrend from its prior three quarters. All in all, Pinterest made good progress to start the year as it remains focused on its long-term strategies. “We continued to scale our native content and creators ecosystem, began beta testing Your Shop, our personalized shopping surface, and released our new open Pinterest API so that any developer can build applications for Pinners, creators, merchants and advertisers,” said CEO Ben Silbermann. Thus, would you be paying more attention to PINS stock?