Looking back on social networking stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Meta (NASDAQ:META) and its peers.
Businesses must meet their customers where they are, which over the past decade has come to mean on social networks. In 2020, users spent over 2.5 hours a day on social networks, a figure that has increased every year since measurement began. As a result, businesses continue to shift their advertising and marketing dollars online.
The 6 social networking stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 2.4% while next quarter’s revenue guidance was 0.8% below.
Thankfully, share prices of the companies have been resilient as they are up 6.3% on average since the latest earnings results.
Famously founded by Mark Zuckerberg in his Harvard dorm, Meta Platforms (NASDAQ:META) operates a collection of the largest social networks in the world – Facebook, Instagram, WhatsApp, and Messenger, along with its metaverse focused Reality Labs.
Meta reported revenues of $42.31 billion, up 16.1% year on year. This print exceeded analysts’ expectations by 2.3%. Despite the top-line beat, it was still a mixed quarter for the company with an impressive beat of analysts’ EBITDA estimates but revenue guidance for next quarter slightly missing analysts’ expectations.
“We’ve had a strong start to an important year, our community continues to grow and our business is performing very well,” said Mark Zuckerberg, Meta founder and CEO.
The stock is up 20.1% since reporting and currently trades at $657.31.
Is now the time to buy Meta? Access our full analysis of the earnings results here, it’s free.
Helping residents figure out what’s happening on their block in real time, Nextdoor (NYSE:KIND) is a social network that connects neighbors with each other and with local businesses.
Nextdoor reported revenues of $54.18 million, up 1.9% year on year, outperforming analysts’ expectations by 1.8%. The business had a very strong quarter with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ number of weekly active users estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 7.9% since reporting. It currently trades at $1.39.
Is now the time to buy Nextdoor? Access our full analysis of the earnings results here, it’s free.
Founded by PayPal alumni Jeremy Stoppelman and Russel Simmons, Yelp (NYSE:YELP) is an online platform that helps people discover local businesses through crowd-sourced reviews.
Yelp reported revenues of $358.5 million, up 7.7% year on year, exceeding analysts’ expectations by 1.8%. It may have had the worst quarter among its peers, but its results were still good as it also locked in a solid beat of analysts’ EBITDA estimates.
Interestingly, the stock is up 12.7% since the results and currently trades at $40.25.
Read our full analysis of Yelp’s results here.
Founded in 2005 by two University of Virginia roommates, Reddit (NYSE:RDDT) facilitates user-generated content across niche communities (called subreddits) that discuss anything from stocks to dating and memes.
Reddit reported revenues of $392.4 million, up 61.5% year on year. This number topped analysts’ expectations by 6.2%. It was a strong quarter as it also recorded EBITDA guidance for next quarter exceeding analysts’ expectations.
Reddit achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The company reported 50.1 million daily active users, up 20.7% year on year. The stock is down 4.9% since reporting and currently trades at $112.91.
Read our full, actionable report on Reddit here, it’s free.
Created with the idea of virtually replacing paper catalogues, Pinterest (NYSE: PINS) is an online image and social discovery platform.
Pinterest reported revenues of $855 million, up 15.5% year on year. This print surpassed analysts’ expectations by 1%. Zooming out, it was a mixed quarter as it also produced an impressive beat of analysts’ EBITDA estimates but revenue guidance for next quarter meeting analysts’ expectations.
Pinterest had the weakest performance against analyst estimates among its peers. The company reported 570 million monthly active users, up 10% year on year. The stock is up 18.3% since reporting and currently trades at $32.99.
Read our full, actionable report on Pinterest here, it’s free.
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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