As fears of a government default subside for the meantime, investors are once again flocking towards the
stock market
. With the current movement in stocks, investors may want to consider social media stocks. For the most part, this area of the tech industry today grows increasingly relevant. This would be the case as people across the globe turn to social media for a wide variety of reasons. Whether it is for social networking, news, or business, there is a growing monetizable market here. Accordingly, I could see investors eyeing the
top social media stocks
amidst the current gains in the stock market today.
Evidently, we could look at the likes of
Twitter
(
NYSE: TWTR
). Through its global microblogging platform, the company now caters to 206 million average monetizable daily active users. Even with its current momentum, Twitter continues to find ways to optimize its business. As of yesterday, the company is selling MoPub, its mobile advertising network for a whopping $1.05 billion in cash. According to Twitter, this would allow the company to increase its focus and accelerate product development.
Meanwhile, social media giant
Facebook
(
NASDAQ: FB
) continues to make headlines for a myriad of reasons. Even so, the company brings plenty to the table via its robust tech portfolio. The likes of which include Facebook’s ad, digital marketplace, gaming, and crypto-related divisions. As a result, it would not surprise me to see investors flocking to FB stock at its current price point. With all that said, could one of these social media stocks be your next big investment?
Top Social Media Stocks To Watch Right Now
-
Snap Inc.
(
NYSE: SNAP
) -
Pinterest Inc.
(
NYSE: PINS
) -
Match Group Inc.
(
NASDAQ: MTCH
)
Snap Inc.
First up, we have
Snap
. Overall, this social media company primarily focuses on providing smartphone camera-based experiences. By Snap’s estimates, its flagship social networking platform, Snapchat, serves up to 293 million daily active users. Regarding its work with consumer camera tech, Snap has and continues to expand its augmented reality (AR) offerings. From AR lenses on Snapchat to AR tech like its Spectacles, this is evident. Now, SNAP stock currently trades at $76.73 as of 12:26 p.m. ET. Could it be worth investing in even after gaining by over 45% year-to-date?
By and large, Snap is not slowing down on the AR front anytime soon. As of last week, the company is now working with WPP, its first “Agency AR” partner. In brief, WPP is one of, if not the world’s largest ad tech companies. Through this global partnership, Snap’s leading AR tech now compliments WPP’s comprehensive suite of marketing and commerce solutions. In practice, this would be a win-win situation as WPP’s extensive network of clients can now connect with consumers via the Snapchat platform.
All in all, Snap continues to find new ways to bolster its AR offerings. Not to mention, the company is also set to report its third-quarter results later this month on October 21. Seeing as Snap saw its total revenue more than doubled year-over-year in its second fiscal quarter report, should investors be watching SNAP stock now?
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Pinterest Inc.
Next up, we have
Pinterest
, a social media company that enables the saving and discovery of information on the internet. It mainly does this via images, animated GIFs, and videos in the form of pinboards. Its pinboards are used by millions all over the world as its users find common and new interests. Users can help spread and propagate ideas and new interests through this method and the company’s platform has gained a lot of popularity since the start of the pandemic. PINS stock currently trades at $52.10 as of 12:25 p.m. ET.
The company recently announced new features for brands to promote their products and ideas to users as part of an effort to grow online shopping on its site. The features come as social media rivals like Facebook and Snap compete for the lucrative e-commerce market with in-app shopping or virtual clothing try-on services. Brands can now upload their product catalogs and Pinterest will automatically pull items into a slideshow advertisement that will be tailored to users based on their interests.
In late July, the company also reported its second-quarter financials. Diving in, revenue for the quarter grew by a whopping 125% year-over-year to $613 million. Its global monthly active users also grew by 9% compared to a year earlier to 454 million. Pinterest also reported a GAAP net income of $69 million for the quarter. It says that these results reflect both the strength of its business and the recent shift in consumer behavior as people spend less time at home. Given all of this, should investors be paying attention to PINS stock right now?
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Match Group Inc.
Following that, we have
Match Group
on our list of social media stocks. The company is the parent company of many popular dating applications like Tinder. In fact, hundreds of millions of people have used its services to create meaningful connections. Last month, the company was added to the S&P 500 index. MTCH stock currently trades at $161.21 a piece as of 12:24 p.m. ET and is up by over 35% in the past year alone.
Recently, the company said that it will introduce a virtual in-app currency designed to help users spend more time on the site and eventually pay real money. This virtual currency will encourage users to spend more time swiping and eventually spending real money on the most popular dating app in the U.S. Ultimately this new feature is part of the company’s efforts to create a richer experience online for its users.
In August, the company reported its second-quarter financials as well. Total revenue for the quarter grew by 27% year-over-year to $708 million. This was driven by a 15% increase in payers to 15 million. Match Group says that it continues to feel optimistic about its momentum as it enters the second half of the year. It also continues to see a strong recovery in the U.S. and Europe. Also, it says that its business continues to prove to be resilient against the pandemic. For these reasons, is MTCH stock worth buying today?
