5 Social Media Stocks to Watch in 2021: A Comprehensive Guide for Investors

Social media platforms have become increasingly popular in recent years with the rise of digitalization and social networking. As a result, social media stocks are gaining attention among investors. If you’re an investor looking to diversify your portfolio, keep an eye on these 5 social media stocks in 2021.

1. Facebook Inc. (FB)

Facebook, as one of the largest social media platforms, is a stock worth considering. Despite facing criticism for its data privacy practices, the company has managed to maintain high user engagement, with over 2.7 billion monthly active users as of 2021. Facebook’s advertising revenue has increased consistently, with a 22% increase from the previous year. Additionally, the company has invested in various technologies such as virtual reality, which shows promising future prospects for the stock.

2. Alphabet Inc. (GOOGL)

Google’s parent company, Alphabet, owns the popular video-sharing platform, YouTube. With over 2 billion monthly active users, YouTube has become a lucrative platform for advertisers, which is reflected in the company’s advertising revenue growth. In addition to YouTube, Alphabet also has other ventures such as self-driving cars and cloud computing, making it a diversified tech conglomerate.

3. Twitter, Inc. (TWTR)

Twitter is another social media platform that has seen significant growth in recent years, with over 192 million daily active users. The company has also made efforts to improve its advertising platform and user experience, leading to a 27% increase in advertising revenue from the previous year. Twitter has also diversified into audio with its acquisition of the audio social networking app, Clubhouse.

4. Snap Inc. (SNAP)

Snap, the parent company of Snapchat, is a social media platform popular among younger generations. The company has seen consistent growth in its user base and revenue. In 2020, Snap reported a 52% increase in revenue, with its advertising revenue growing by 56% from the previous year. Additionally, Snap has expanded into augmented reality and e-commerce, which may lead to increased revenue growth opportunities.

5. Pinterest, Inc. (PINS)

Pinterest is a visual discovery platform with over 300 million monthly active users. The company has shown consistent revenue growth, with a 48% increase in revenue in 2020. Pinterest’s advertising platform has also seen significant improvement, leading to a 58% increase in advertising revenue from the previous year. The company’s expansion into e-commerce and the recently added “Idea Pins” feature may lead to further revenue growth opportunities.

Conclusion

In summary, social media stocks have shown significant potential in the market. While no investment is guaranteed, these 5 social media stocks show promising growth prospects and are worth considering for investors. As always, it’s important to conduct your own research and make informed decisions when investing in any stock.