Social media stocks have been under significant pressure in the stock market recently. Nevertheless, the industry has been picking up steam since the start of the month. This came after the announcement of the merger between video distribution platform Rumble and the SPAC CF Acquisition Corp VI. Given the reliance and importance of social media in our lives today, the industry would likely continue to thrive moving forward. After all, it would be unimaginable that people would stop using social media unless a new revolutionary platform makes an appearance. Well, could that be the metaverse? Possibly, but chances are, social media companies would be the first jumping on the metaverse bandwagon.
Besides, there have been plenty of exciting developments in the social media space lately. The biggest one would obviously be the potential rise of former president Donald Trump’s social media company. Trump Media & Technology Group (TMTG) will be going public through a deal with Digital World Acquisition (NASDAQ: DWAC). In more recent news, there have also been talks of Triller going public through a merger with Seachange International (NASDAQ: SEAC). Triller is a social-video platform that counts TikTok among its rivals. So, do you think some of the top social media stocks in the stock market today would make a comeback soon? If so, why not take a look at some of the top names driving the industry today.
Best Social Media Stocks To Watch This Week
- CF Acquisition Corp VI (NASDAQ: CFVI)
- Snap Inc (NYSE: SNAP)
- Meta Platforms Inc (NASDAQ: FB)
- Zynga Inc (NASDAQ: ZNGA)
CF Acquisition Corp VI
To kick start the list, we will be looking at the trending blank check company, CF Acquisition Corp VI. It has been making the headlines after it announced earlier this month that it has entered into a definitive combination agreement with Rumble. For those unfamiliar, Rumble is a high-growth neutral video distribution platform. Rumble’s mission is to restore the internet to its roots based on freedom of expression and creativity.
CFVI stock is edging up today after Trump’s TMTG confirmed a partnership with Rumble. “I have selected the Rumble Cloud to serve as a critical backbone for TMTG infrastructure,” said Donald Trump. TMTG has already launched Truth Social on the Rumble Cloud for invited guests on its initial Beta launch. As part of the partnership, Rumble will be delivering video and streaming services for Trump’s TRUTH Social.
On top of that, Rumble also announced yesterday the termination of its relationship with the Unruly Group and Tremor International (NASDAQ: TRMR). This comes after the companies attempted to censor Dan Bongino, the host of a nationally syndicated radio show and a Fox News television program. From this, we can see Rumble’s commitment to bringing free and open internet to the public. Given these exciting developments, would you consider jumping on the CFVI stock bandwagon?
Following that, we have the camera company, Snap. The company’s flagship product, Snapchat, is a camera application that is extremely popular among millennials. It helps people to communicate through short videos and images known as a Snap. Given its current valuation, it is not surprising that investors would be keeping tabs on the company stock.
Last month, the company announced that it will be adding audio from Sony (NYSE: SONY) Music Entertainment to its Sounds library. So, Snap has now existing deals with three major music labels, Sony, Universal Music Group, and Warner Music Group. In addition, Snapchat will also roll out its Sound Lenses, featuring pre-selected songs and visual effects that make the subject look like they’re singing.
However, investors should be aware that the company’s recent bearish sentiment is largely driven by its third-quarter earnings report. The company’s revenue missed Wall Street expectations after its advertising business was disrupted by privacy changes Apple (NASDAQ: AAPL) introduced earlier this year. That said, the company did exceed expectations in terms of global daily active users (DAU) and adjusted earnings per share. Its adjusted earnings per share were 17 cents compared to an expected 8 cents by Refinitiv. All things considered, should you be keeping close tabs on SNAP stock?
Meta Platforms,formerly Facebook, is one of the top social media companies in the world today. Essentially, it focuses on building products that enable people to connect through a variety of devices. The company’s apps include the likes of Facebook, Instagram, Messenger, and WhatsApp. Well, these are social media applications that are widely used around the world by billions of people.
As some of you may know, the company is shifting its focus toward the metaverse. Last week, Meta announced that it is making Horizon Worlds available for free to everyone 18 years of age or older in the U.S. and Canada. This is a social virtual reality (VR) experience where you can create and explore together. Its vision for Horizon Worlds is to develop a VR space with the best-in-class tools for creators to express their creativity.
Besides that, the company’s recent financial report has also been as impressive as you would expect. It reported a revenue of $29 billion, representing an increase of 35% year-over-year. Another important metric that continues to grow would be its DAU, increasing by 6% to 1.93 billion on average for September 2021. This is by no means a small feat as it continues to gain popularity despite its stature in the social media space. Given all these, would FB stock be a buy for you?
To sum up the list, we will be looking at the provider of social game services, Zynga. In detail, the company develops, markets, and operates social games as live services. Its live services platform captures insights about how its players interact within its games. Then, it uses this data to deliver engaging interactive experiences for its players while determining how to monetize its games.
In November, the company announced that NaturalMotion is now the official game partner of the professional rally driver and Internet phenomenon, Ken Block, for the popular mobile drag racing game, CSR Racing 2. For those unfamiliar with the superstar, Ken is a winner of 16 U.S. rallies, a six-times Global RallyCross Championship race winner, and an X-Games superstar.
Financially, Zynga has also been firing on all cylinders in its recent third quarter. Its revenue was $705 million, up 40% year-over-year. Also, bookings were up by 6% to $668 million, This is the company’s highest ever third-quarter revenue and bookings as it remains on pace to have the best financial year in the company’s history. With that in mind, would you consider ZNGA stock a top social media stock to watch?
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