Are These The Best Social Media Stocks To Buy This Week?

Social media stocks have been under a lot of pressure in the stock market this year. For the uninitiated, social media companies are businesses that provide online platforms or services for social networking. These platforms or services enable users to connect with each other and share content. Some examples of social media stocks include Twitter (NYSE: TWTR), and Match Group (NASDAQ: MTCH). Many investors believe that social media companies will continue to grow at a rapid pace, which in turn could make social media stocks an attractive investment right now.

However, some may consider social media stocks as a higher-risk investment, as they can be volatile and prone to sudden changes in share price. Nevertheless, it would not be surprising if some investors may be looking to buy the dip. After all, social media remains to be an important part of our daily lives. With all that in mind, here are three top social media stocks to watch in the stock market now.

Social Media Stocks To Watch This Week

Snap Inc. (SNAP Stock)

Starting off our list today is Snap Inc. (SNAP). The company categorizes itself as a camera company and a social media company. It is the parent company of the popular social media platform Snapchat. Aside from Snapchat, the company also develops and supplements Spectacles and Bitmoji. In detail, Spectacles is an augmented reality (AR) device that integrates seamlessly with Snapchat, permitting for a more interactive experience. Meanwhile, Bitmoji allows users to create their own personalized digital avatars which can be used on Snapchat along with other messaging apps.

Last month, the company reported a miss for its second quarter 2022 earning results. In specific, Snap reported a loss of $0.06 per share on revenue of $1.1 billion. Also, they notched in a 13.1% revenue increase on a year-over-year basis. Though, the company did not provide any guidance for Q3. The company reported in its press release that was due to “uncertainties related to the operating environment“.

CEO Evan Spiegel commented, “While the continued growth of our community increases the long-term opportunity for our business, our financial results for Q2 do not reflect our ambition. We are evolving our business and strategy to reaccelerate revenue growth, including innovating on our products, investing heavily in our direct response advertising business, and cultivating new sources of revenue to help diversify our topline growth.” As of Monday, shares of SNAP stock have rallied over 5% and is currently trading at $12.24 per share.

SNAP stock
Source: TD Ameritrade TOS

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Pinterest (PINS Stock)

Following that is, Pinterest (PINS). Pinterest is a visual discovery engine company that allows people to discover and personalize visual content. Shares of the social media company are down over 35% year-to-date, which could make it attractive for investors at these price levels. Just last month, the company reported weaker-than-expected 2nd Quarter 2022 earnings results.

In the report, the company recorded earnings of $0.07 per share on revenue of $665.9 million. Wall Street consensus estimates were $0.18 per share on revenue of $674.8 million. Though, Pinterest posted an 8.6% increase in revenue on a year-over-year basis. Revenue grew 8.6% on a year-over-year basis. The company said it expects third-quarter revenue of an estimated $664.58 million. The current analysts’ consensus revenue estimate is $728.68 million for Q3.

Pinterest achieved 9% revenue growth year over year in Q2, or 10% revenue growth on a constant currency basis, despite the uncertainty facing our advertisers,” commented Bill Ready, CEO, Pinterest. “We accelerated our investment in shopping and ecommerce this quarter, and I am thrilled by the dedication of our leaders and employees to continue to build a positive place on the Internet.” With all this in mind, do you have PINS stock on your watchlist right now?

PINS stock
Source: TD Ameritrade TOS

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Meta Platforms Inc. (META Stock)

Last but not least, we have Meta Platforms, the parent company of the popular social media platform Facebook. The company builds technologies that help people find communities and grow businesses. Specifically, Meta operates through two business segments, Family of Apps (FoA) and Reality Labs (RL). FoA would include platforms such as Facebook, Instagram, Messenger, WhatsApp, and others. While, RL includes augmented and virtual reality-related consumer hardware, software, and content. An example of this would be the company’s Oculus VR headset. With all the hype this year surrounding the Metaverse, it’s not surprising that investors are starting to give META stock a closer look right now.

In July, Meta Platforms reported its second quarter 2022 results. In the report, Meta came in under analysts’ expectations on earnings and revenue. Next, the company posted earnings of $2.46 per share on revenue of $28.8 billion. In comparison, the consensus earnings estimates were $2.50 per share on revenue of $28.9 billion. Notably, this was the first time in company history that Meta reported a drop in revenue.

What’s more, the CFO of Meta provided some outlook commentary, “We expect third quarter 2022 total revenue to be in the range of $26-28.5 billion. This outlook reflects a continuation of the weak advertising demand environment we experienced throughout the second quarter, which we believe is being driven by broader macroeconomic uncertainty. We also anticipate third quarter Reality Labs revenue to be lower than second-quarter revenue. Our guidance assumes foreign currency will be an approximately 6% headwind to year-over-year total revenue growth in the third quarter, based on current exchange rates.” Shares of META are currently still down over 46% year-to-date and are currently trading at $180.95 per share on Monday afternoon.

META stock
Source: TD Ameritrade TOS

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