2 Social Media Stocks Wall Street Predicts Will Rally More Than 45%

NASDAQ: FB | Meta Platforms Inc. News, Ratings, and Charts

FB – The social media industry has successfully cornered a robust consumer base over a relatively short span. And because social media platforms continue to attract millions of users from around the globe, Wall Street analysts expect popular stocks Meta Platforms (FB) and Pinterest (PINS) to rally more than 45% in price this year. Read on.

Thanks to the remote lifestyle, the social media industry has witnessed solid growth amid the COVID-19 pandemic. And demand for social media platforms is expected to increase over the long term due to their capacity to engage millions of users internationally.

According to Statista, almost 4.41 billion people are set to use social media worldwide by 2025, more than half of today’s global population. Diversified content merged with increased preferences for virtual social interaction amid rapid digitization might set the industry for a long bull run.

Therefore, we think it could be wise to add quality social media stocks Meta Platforms, Inc. (FB) and Pinterest, Inc. (PINS) to one’s watch list. Wall Street analysts expect these stocks to rally by more than 45% in price in the near term.

Meta Platforms, Inc. (FB)

FB in Menlo Park, Calif., develops products that allow people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, wearables, and in-home devices worldwide. It operates in two segments, Family of Apps and Reality Labs.

On Feb. 2, 2022, Mark Zuckerberg, FB founder, and CEO, said, “I’m encouraged by the progress we made this past year in a number of important growth areas like Reels, commerce, and virtual reality, and we’ll continue investing in these and other key priorities in 2022 as we work towards building the metaverse.”

FB’s total revenue came in at $33.67 billion for the fourth quarter, ended December 31, 2021, up 19.9% year-over-year. Its net cash provided by operating activities came in at $18.1 billion, up 28.9% year-over-year. The company’s total assets were $165.99 billion for the period ended Dec. 31, 2021, versus $159.32 billion for the period ended Dec. 31, 2020.

For its fiscal year 2023, analysts expect FB’s revenue to increase 17.1% year-over-year to $155.35 billion. The company’s EPS is expected to grow 21.4% per annum for the next five years. In addition, it surpassed the consensus EPS estimates in three of the trailing four quarters. The stock closed yesterday’s trading session at $211.03. Wall Street analysts expect the stock to hit $332.93 in price in the near term, which indicates a potential 57.8% upside.

Pinterest, Inc. (PINS)

PINS in San Francisco operates as a visual discovery engine in the United States and internationally. It shows visual machine learning recommendations based on pinners’ tastes and interests, and its engine allows people to find inspiration for their lives.

On Feb. 3, 2022, Ben Silbermann, CEO and co-founder, PINS, said, “We took important steps in 2021 with the launch of our foundational technology to deliver a video-first publishing platform. And, I’m proud to say that for the first time, we surpassed $2 billion in revenue for the year—growing 52% over the previous year—and reached our first full year of GAAP profitability.”

For its fiscal fourth quarter, ended Dec.31, 2021, PINS’ revenue came in at $846.65 million, representing a 20% year-over-year rise. Its non-GAAP net income came in at $339.45 million, up 15.3% year-over-year. Also, its adjusted EBITDA came in at $350.86 million, up 17.3% year-over-year.

Analysts expect PINS’ revenue to increase 26.6% year-over-year to $3.96 billion in its fiscal year 2023. Its EPS is expected to increase 33.7% year-over-year in fiscal 2023 to $1.35. Also, it surpassed the EPS estimates in each of the trailing four quarters. The stock closed yesterday’s trading session at $26.75. Wall Street analysts expect the stock to hit $39.43 in the near term, which indicates a potential upside of 47.4%.

FB shares were trading at $209.08 per share on Tuesday morning, down $1.95 (-0.92%). Year-to-date, FB has declined -37.84%, versus a -8.76% rise in the benchmark S&P 500 index during the same period.

About the Author: Riddhima Chakraborty

Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master's degree in economics, she helps investors make informed investment decisions through her insightful commentaries. More...

More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
FBGet RatingGet RatingGet Rating
PINSGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com

Upside Potential for This Bull Market?

The S&P 500 (SPY) is flirting with new highs once again. Thus a good time to ponder the upside potential for stocks into year end and then what is likely on tap in 2024. That is exactly what investment veteran Steve Reitmeister shares in the commentary below including a preview of his 11 favorite picks for today’s market. Read on below for more...

3 High-Performing Chip Stocks to Secure Today

The semiconductor industry is poised to thrive due to the extensive use of chips for applications across multiple sectors and favorable government initiatives. Amid this backdrop, it could be wise to invest in high-performing chip stocks Nikon Corporation (NINOY), Infineon Technologies (IFNNY), and Everspin Technologies (MRAM) now. Continue reading…

Rising Defense Demands Will Be a Boon for These 3 Industry Leaders

As year end approaches, we’ve seen a major change in the geopolitical conflict picture as larger scale confrontations draw out, and new confrontations involve larger, and more, players than over the past few decades. This uptick in real and potential nation state conflicts means the weapons of war and defense become larger, and demand for “big ticket” defense items is growing. Huntington Ingalls, BAE Systems, and Lockheed Martin are three very large defense contractors that should see benefits from increasing global instability as nation states hike defense spending.

UiPath (PATH) Earnings Unveiled: Software Stock Opportunity?

UiPath (PATH) is growing with continuous investments in AI. Moreover, PATH boasts an impressive earnings surprise record. So, is the stock worth buying as the company prepares to release third-quarter earnings? Read on...

How to Profit Using The Probabilistic POWR Pairs Process

An example of grabbing gains from comparative performance with a lower risk China pairs trade on BIDU/PDD.

Read More Stories

More Meta Platforms Inc. (FB) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All FB News