3 Social Media Stocks THRIVING During COVID-19

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

FB – Facebook (FB), Snapchat (SNAP), and Hubspot (HUBS) are thriving as people spend more time online, and ad rates continue increasing.

Companies are battling every day to capture your attention.

Nowhere is this more evident than on social media platforms. Due to network effects, the value of a social network increases as it gets larger, and people spend more time on it. This translates into more ads and higher ad rates. 

The coronavirus is leading to people spending more time online due to the dearth of other activities. This is boosting the revenues of social media companies as they can deliver more ads. 

Even before the coronavirus, advertising budgets were shifting to social media from traditional media. Ad spending on social media is expected to grow by 7.6% between 2020 to 2024, while ad spending on traditional media will decline.

Here are three social media stocks that are benefitting from this situation:

Facebook, Inc. (FB)

FB has recently come under fire with advertisers boycotting its platform amid concerns over hate speech and misinformation. The company is in active talks with various stakeholders to resolve the issue. However, the stock price continues to rise, demonstrating investors’ confidence in its ability to resolve the issue efficiently.

In the first quarter of 2020, FB reported a year-over-year increase in revenue of 17%. While FB missed the consensus EPS estimate in the first quarter, it beat the estimates in the prior two quarters. The company is scheduled to release its second-quarter results on July 28th and the consensus EPS estimate of $1.37 for the quarter indicates year-over-year growth of 50.5%.

FB delivered a YTD price return of 19.1%. It has also witnessed positive price returns in the one-month, six-month, one-year, and three-year periods.

How does FB stack up for the POWR Ratings?

A for Trade Grade

A for Buy & Hold Grade

A for Industry Rank

B for Peer Grade

A for overall POWR Rating

Snap Inc.(SNAP)

SNAP reported a 44% year-over-year increase in revenue in the first quarter of 2020. Its second-quarter results will demonstrate how the company has benefited from the pandemic due to increased user traffic and engagement.  

SNAP also announced a host of new updates during the virtual Snap Partner Summit. These updates include augmented reality, Bitmoji for games, and Local Lenses. These improvements in its platform will lead to greater user engagement that will translate into increased ad revenues.

SNAP delivered a YTD price return of 58.8% along with positive price returns in the one-month, six-month, one-year, and three-year periods.

The company has been accorded an overall POWR Rating of A along with an A for each of the four POWR components.

 HubSpot, Inc.  (HUBS)

The trends of increasing spending in inbound marketing, online marketing, and the decline in traditional advertising are all moving in HUBS’ favor. Further, its stock has been performing well since its first-quarter earnings which beat expectations by more than 50%. HUBS has beat EPS estimates in each of the last four quarters.

HUBS is likely to continue this momentum, as its reduced pricing is helping with customer acquisition. It has delivered a YTD price return of 50.2% while also maintaining positive price returns in the one-month, six-month, one-year, and three-year periods.

The company has received an overall POWR Rating of A along with an A for each of the four POWR components.

Want More Great Investing Ideas?

9 “BUY THE DIP” Growth Stocks for 2020

Is the Bull S#*t Rally FINALLY Over?

7 “Safe-Haven” Dividend Stocks for Turbulent Times

Top 3 Investing Strategies for 2020

FB shares fell $0.07 (-0.03%) in after-hours trading Friday. Year-to-date, FB has gained 19.40%, versus a -0.31% rise in the benchmark S&P 500 index during the same period.

About the Author: StockNews Staff

The StockNews Staff is led by a team of investment experts including CEO, Steve Reitmeister and trading legend Adam Mesh. The goal of our commentary is to provide you with valuable insights to make more successful investment decisions. More...

More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
FBGet RatingGet RatingGet Rating
SNAPGet RatingGet RatingGet Rating
HUBSGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com

2024 Stock Market Outlook

The time to think about the 2024 stock market is now. Will it be a bull or bear? And where does the S&P 500 (SPY) end the year? And what are the top picks to outperform? Investment veteran Steve Reitmeister does his level best to answer all these questions. Just read on below...

3 Financial Stocks to Boost Your Portfolio's Bottomline

The consumer financial sector is experiencing a transformative wave of technological advancements fueled by the rise of fintech companies and digital banking. Amid this swiftly evolving landscape, three consumer finance stocks, Mastercard (MA), Noah Holdings (NOAH), and EZCORP, Inc. (EZPW) could be ideal buys this month. Read more…

POWR Income Stock of the Week: Ternium SA (TX)

The Federal Trade Commission has been on a crusade this year to stop mergers in their tracks with little regard to the size of the merger or the industry it was taking place in. But, with major setbacks being delivered by the courts the mergers and acquisitions markets are thawing, and one industry set to consolidate is the steel industry. This may be a boon for all the steel players involved, and one under the radar income play steel producer is Ternium.

3 Travel Stocks to Watch With Holiday Gains Potentially in the Pipeline

The travel industry is witnessing a surge in cruise market interest, driven by evolving consumer preferences and sustainability considerations. Hence, travel stocks Carnival Corporation (CCL), Royal Caribbean (RCL), and Lindblad Expeditions (LIND) might be sound watchlist additions before the holidays. Read more…

VERY Healthy Stock Rotation Underway

The S&P 500 (SPY) is putting the finishing touches on a strong 2023 campaign. This is the 4th straight year the large cap index has outperformed small and mid caps. Gladly there are signs this is going to change which is a very healthy sign for the longevity of this bull run. 43 year investment pro Steve Reitmeister explains why in his latest commentary that includes insights on this top 11 picks for today’s market. Read on below for more...

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