Top Social Media Stocks in 2022 | The Motley Fool

Investing in Social Media Stocks

social media international relations and security network ’ t new anymore, but it ’ randomness however a aggressive diligence. 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 calm make most of their money from advertise, but social media is maturing and generating gross from sources such as e-commerce, digital payments, and television games. Investing in social media has more than doubled stockholder dollars since the start of 2018, as measured by the operation of the exchange-traded fund Global X Social Media ETF ( NASDAQ : SOCL ). Returns have been driven by top names such as Meta Platforms ’ mho Facebook ( NASDAQ : FB ), Snap ( NYSE : snap ), Twitter ( NYSE : TWTR ), and Alphabet ’ s Google ( NASDAQ : GOOG L ) ( NASDAQ : GOOG ), which besides owns YouTube. aside from the major players, plenty of other emerging social platforms are worth your attention. With hundreds of millions of people expected to become regular internet users in the future few years, now is a capital fourth dimension to consider investing in social 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 clear downloaded dating app cosmopolitan ), OkCupid, and Hinge ( democratic among younger generations ) — has been producing double-digit tax income increase for years. Finding company via the web has steadily become normalized over time, but COVID-19 has helped to solidify the demand for on-line dating services. Match grew steadily even at the altitude of the 2020 pandemic lockdowns. Compared to early large social media businesses, Match has a unique business model. It derives most of its tax income from subscriptions paid directly by users rather than advertising. With on-line dating becoming more platitude, specially in emerging economies, Match continues to forecast strong emergence in tax income. It besides completed the acquisition of South Korea-based social and video recording chopine Hyperconnect for $ 1.725 billion over the summer of 2021 .

2. Etsy

Etsy is good known as an e-commerce chopine, but it stands out for its alone approach to facilitating on-line sales. not only does the ship’s company 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 social focus. Etsy has grown in part by acquisitions. It owns the vintage music equipment and reseller locate Reverb, and it recently purchased Depop, the used-apparel marketplace that has tens of millions of users worldwide — most of them members of Generation Z, born in the recently 1990s or early 2000s. Etsy besides owns Elo7, dubbed the “ the Etsy of Brazil, ” which is helping the company to increase its presence in the largely untapped South american commercialize .Person sitting on couch in kitchen while looking at phone and laptop.

3. Pinterest

The ocular sharing, search, and discovery caller was a huge winner during the COVID-19 pandemic. Millions around the ball flocked to Pinterest while confined to their homes, and many are choosing to continue using Pinterest even as the pandemic starts to ease. With more than 450 million monthly users, it has become a top web site 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 again. The company is spending heavy to continue increasing its user floor and ways for businesses to build their stigmatize on Pinterest, but it however is experiencing some growing pains as the pandemic eases. however, it is generating net income and positive release cash flow now, therefore Pinterest is in good human body. Its strong fiscal status and large global exploiter base 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 sociable media and on-line synergistic platforms. Among them are Match Group, the travel and tourism accumulate Expedia ( NASDAQ : EXPE ), and the on-line video and streaming site Vimeo ( NASDAQ : VMEO ).

While IAC has a test track record of investing in and expanding businesses in the social kingdom of the internet, its current concenter is not rigorously social media. IAC ‘s independent focus is its majority interest in dwelling project caller ANGI Homeservices ( NASDAQ : ANGI ), but it besides is engaged with many other companies, including Dotdash. This pudding stone includes Investopedia, Simply Recipes, and other websites. It ’ second besides acquiring Meredith ’ south ( NYSE : MDP ) media and publish business, which owns magazines such as PEOPLE, Better Homes & Gardens, Allrecipes, Southern Living, and InStyle .Person holding smartphone and using social media.

5. Zynga

Zynga is one of the largest mobile game output companies, and fluid bet on is the largest segment of an already large and steadily expanding video game industry. The company is responsible for democratic 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 alive events through games has been keystone to Zynga ’ south success. With a massive exploiter base spanning more than 150 countries, the company is planning to offer more live bet on experiences via its mobile app to keep users engaged and interacting with each early. Besides tax income from in-app purchases, Zynga besides generates about one-fifth of its sales from advertise. Its late learning of the mobile ad platform Chartboost is strengthening the social gambling colossus ‘s ability to make money from ad sales .

6. Bumble

Bumble ( and its subsidiary company Badoo ) was founded by a former executive at Match Group ’ s Tinder, and it has emerged as one of fastest-growing dating apps. The company ’ s initial public put up ( IPO ) in early 2021 raised $ 2.5 billion in cash, and it stands out for being one of precisely a few female-founded and -led companies. Bumble is succeeding because it takes a fresh overture to social network and on-line date. botch and Badoo ‘s basic features are spare to use, and the company chiefly makes its money from erstwhile, in-app purchases and premium subscriptions. In less than a decade ( Bumble was founded in 2014 ), this top dating and relationship service has accumulated millions of users worldwide and is silent expanding quickly, forecasting double-digit percentage sales emergence for 2021 .

Tech Stocks

Learn more about investing in technical school stocks .

Telecommunications Stocks

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

FAANG Stocks

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

IoT Stocks

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

Should you buy social media stocks?

The sociable media business model is hush evolving and changing. With roots in advertising-based gross, social media companies are finding newfangled ways to connect people all over the global while more efficaciously monetizing their expansive networks. Investors in social media stocks should be comfortable with buy and holding while the social media industry reaches maturity .

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