In our society, social media had grown in popularity rapidly year over year. Beginning as just a small idea, social media has become a part of everyone’s lives whether we want it to be or not. These services allow people to connect who otherwise would not be able to be. So it is no surprise that the pandemic has caused an increase in the usage of these top social media stocks to buy because of the stay at home orders.
Social media services like Weibo (WB Stock Report) Twitter (TWTR Stock Report) have been trending in the market all throughout 2020. In fact, social media stocks are upon the top gainers in 2020. The benefits of being a social media company in 2020 are very real. There are plenty of reasons that social media stocks are increasing in price. So let’s look at three social media stocks that have been trending in the stock market this year, and continue to as the year progresses.
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The first social media stock to watch on this list is Pinterest Inc. (PINS Stock Report). Pinterest is a large social media service used in many markets all around the world. Its website 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. Let’s look at the recent news that has occurred for this social media stock.
Pinterest’s services are being used much more which is creating hype for PINS stock. Before the stock market crashed PINS stock was at $23 a share on average. Now, PINS stock price is at $49 a share on average. It is clear that the pandemic is what caused this to happen. On October 28th, Pinterest reported its third-quarter financial results for 2020. It was in these results that it announced revenue growth of 58% year over year to $443 million.
The CEO of the company, Ben Silbermann said, “Our top priority is to continue making Pinterest home to the most inspiring and actionable content. This quarter we launched a set of tools to empower creators to show and share their ideas with people who are ready to act.”
The company is expecting revenue to grow 60% year over year in its fourth-quarter results which are to come. For now, its global monthly active users grew 37% year over year in this quarter.
Now let’s talk about one of the largest social media companies, Facebook Inc. (FB Stock Report). Many know it as a large social media company that has changed the way we use the internet. Facebook develops products and applications for people to use and connect with others. Its brands include Facebook, Instagram, and WhatsApp as well. Holding a massive market share of the social media industry has had some controversy for the company. But let’s look at how it has performed throughout 2020 and how it is able to do so well.
Back in July, the company released its second-quarter financial results for 2020. It beat Wall Street’s expectations for revenue, which resulted in an FB stock uptick. Facebook’s revenue was $18.69 billion, up 11% year over year. This is due to the large arrival of website and app users during the pandemic, and Facebook’s ability to adapt to the increase.
Analysts expect Facebook to increase its revenue 10% year over year in its next quarterly earnings. The company stated that it is proud that consumers can rely on its services to stay connected while we can’t be together in person, paraphrasing the words of Mark Zuckerberg. That is why FB stock is trending exponentially this year. FB stock price has gone from $213 a share to $267 a share in 2020. That is why it has made this list of the top social media stocks to watch in 2020. It seems like you can’t make a social media stock list without mentioning this company.
The final company on this list of the top social media stocks is Snap Inc. (SNAP Stock Report). Snap Inc. operates Snapchat, a social media application that allows people to send photos that can’t be seen again. It also allows you to chat with friends and post 24-hour “story” photos and videos. Throughout the year, Snapchat has been growing in stock price and user base. The company owns Spectacles, a glasses company. It also owns Bitmoji, which allows people to create lookalike bitmoji people to use on Snapchat and other platforms. The app increased its ads and shows throughout 2020. Let’s look at the recent news from this social media company.
Pinterest’s strong revenue increase in its recent report has caused SNAP stock to go up 3% due to also being a social media service. The future of SNAP stock price will be determined by how well the company’s performance was in this third-quarter when it releases the results. Snapchat has also released the feature to add music to Snaps. It happened this week, and the feature is called “Sounds”. This feature will allow users to pick from a “robust and curated catalog of music from emerging and established artists” to add to photos and videos.
SNAP stock went from $17 a share to $42 a share as of October 28th. The growth of the company has been very significant, so it will be interesting to see what it reports next. Social media has always been growing year over year, but this pandemic gave it a big boost. As a result, investors who got in early on these social media stocks were able to make a profit. That is why these social media stocks are on this list.