Investing in Social Media Stocks

social media international relations and security network ’ t new anymore, but it ’ south calm a aggressive industry. About 3.8 billion people are active social media users in 2021. By 2025, the number of users is expected to climb to 4.4 billion. The biggest social networks hush make most of their money from ad, but social media is maturing and generating tax income from sources such as e-commerce, digital payments, and video games. Investing in social media has more than doubled stockholder dollars since the begin of 2018, as measured by the performance of the exchange-traded store Global X Social Media ETF ( NASDAQ : SOCL ). Returns have been driven by top names such as Meta Platforms ’ mho Facebook ( NASDAQ : FB ), Snap ( NYSE : snatch ), Twitter ( NYSE : TWTR ), and Alphabet ’ sulfur Google ( NASDAQ : GOOG L ) ( NASDAQ : GOOG ), which besides owns YouTube. digression from the major players, batch of other emerging social platforms are worth your attention. With hundreds of millions of people expected to become even internet users in the adjacent few years, now is a bang-up prison term to consider investing in sociable media companies .

Best social media stocks

These are some of the leading social media stocks to own in 2021 and beyond :

Company	Market Cap	Description
Match Group (NASDAQ:MTCH)	$42 billion	The parent company of dating apps Tinder, OkCupid, and Hinge.
Etsy (NASDAQ:ETSY)	$30 billion	A social selling platform that enables discovery of unique items.
Pinterest (NYSE:PINS)	$29 billion	A visual sharing, search, and discovery platform.
IAC/InterActiveCorp (NASDAQ:IAC)	$14 billion	An investment firm with a long track record of fostering up-and-coming social media sites.
Zynga (NASDAQ:ZNGA)	$8.3 billion	A leader in mobile and social video games.
Bumble (NASDAQ:BMBL)	$6.4 billion	The parent organization of dating and relationship apps Bumble and Badoo.

Data source: YCharts as of market close Nov. 2, 2021.

1. Match Group

Match Group — best known for its date sites Tinder ( the top downloaded dating app global ), OkCupid, and Hinge ( popular among younger generations ) — has been producing double-digit tax income growth for years. Finding company via the web has steadily become normalized over time, but COVID-19 has helped to solidify the necessitate for on-line go steady services. Match grew steadily even at the stature of the 2020 pandemic lockdowns. Compared to other big social media businesses, Match has a unique business model. It derives most of its tax income from subscriptions paid directly by users rather than ad. With on-line dating becoming more commonplace, specially in emerging economies, Match continues to forecast solid growth in gross. It besides completed the acquisition of South Korea-based social and video recording platform Hyperconnect for $ 1.725 billion over the summer of 2021 .

2. Etsy

Etsy is good known as an e-commerce platform, but it stands out for its unique approach to facilitating on-line sales. not lone does the caller specialize in vintage and handmade goods, but Etsy is besides an on-line discovery platform where shoppers directly connect with creators. With more than 7.5 million sellers and 96 million active buyers, Etsy is one of the largest e-commerce platforms with a sociable focus. Etsy has grown in region by acquisitions. It owns the vintage music equipment and reseller locate Reverb, and it recently purchased Depop, the used-apparel market that has tens of millions of users worldwide — most of them members of Generation Z, born in the late 1990s or early on 2000s. Etsy besides owns Elo7, dubbed the “ the Etsy of Brazil, ” which is helping the company to increase its bearing in the largely untapped South american market .

3. Pinterest

The ocular communion, search, and discovery caller was a huge winner during the COVID-19 pandemic. Millions around the earth flocked to Pinterest while confined to their homes, and many are choosing to continue using Pinterest evening as the pandemic starts to ease. With more than 450 million monthly users, it has become a top locate worldwide for merchants and creators to advertise their products via a unique picture- and video-based format. Pinterest reported a sharp slowdown in year-over-year active users in the summer of 2021 as more people started to leave home plate again. The company is spending heavily to continue increasing its exploiter base and ways for businesses to build their brand on Pinterest, but it however is experiencing some growing pains as the pandemic eases. however, it is generating net income and positive free cash flow immediately, indeed Pinterest is in good condition. Its hard fiscal position and large ball-shaped drug user infrastructure explains why fintech party PayPal Holdings ( NASDAQ : PYPL ) had reportedly expressed interest in acquiring Pinterest .

4. IAC/InterActiveCorp

IAC is hardly a family name, but the holding company has fostered and sold several long-familiar social media and on-line synergistic platforms. Among them are Match Group, the travel and tourism conglomerate Expedia ( NASDAQ : EXPE ), and the on-line video and streaming web site Vimeo ( NASDAQ : VMEO ). While IAC has a proved track phonograph record of investing in and expanding businesses in the social kingdom of the internet, its current stress is not rigorously social media. IAC ‘s main stress is its majority stake in home plan company ANGI Homeservices ( NASDAQ : ANGI ), but it besides is engaged with many early companies, including Dotdash. This conglomerate includes Investopedia, Simply Recipes, and early websites. It ’ sulfur besides acquiring Meredith ’ sulfur ( NYSE : MDP ) media and publish commercial enterprise, which owns magazines such as PEOPLE, Better Homes & Gardens, Allrecipes, Southern Living, and InStyle.

5. Zynga

Zynga is one of the largest mobile bet on production companies, and mobile gambling is the largest section of an already large and steadily expanding video game industry. The company is responsible for popular titles such as Words With Friends, Zynga Poker, Farmville, and Toon Blast. Zynga acquired developer StarLark and its hit game Golf Rival in 2021. Building social experiences and live events through games has been key to Zynga ’ second success. With a massive drug user base spanning more than 150 countries, the company is planning to offer more be gambling experiences via its mobile app to keep users engaged and interacting with each other. Besides tax income from in-app purchases, Zynga besides generates about one-fifth of its sales from advertise. Its late acquisition of the mobile ad chopine Chartboost is strengthening the social bet on giant ‘s ability to make money from ad sales .

6. Bumble

Bumble ( and its subordinate Badoo ) was founded by a early executive at Match Group ’ s Tinder, and it has emerged as one of fastest-growing dating apps. The company ’ s initial public offer ( IPO ) in early 2021 raised $ 2.5 billion in cash, and it stands out for being one of just a few female-founded and -led companies. Bumble is succeeding because it takes a fresh approach to social network and on-line go steady. stumble and Badoo ‘s basic features are unblock to use, and the company primarily makes its money from erstwhile, in-app purchases and premium subscriptions. In less than a ten ( Bumble was founded in 2014 ), this top date and relationship service has accumulated millions of users worldwide and is still expanding quickly, forecasting double-digit share sales growth for 2021 .

Tech Stocks

Learn more about investing in technical school stocks .

Telecommunications Stocks

These companies provide telephone, internet, and television services — along with the infrastructure that supports them .

FAANG Stocks

The five technical school giants that make up a significant sum of the S & P 500 Index

IoT Stocks

The ‘internet of things, ‘ or the casual objects that are increasingly connected to the internet

Should you buy social media stocks?

The social media business mannequin is distillery evolving and changing. With roots in advertising-based gross, social media companies are finding new ways to connect people all over the earth while more efficaciously monetizing their expansive networks. Investors in social media stocks should be comfortable with buying and holding while the social media diligence reaches maturity .

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