As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the social networking industry, including Yelp (NYSE:YELP) 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 very strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.9% while next quarter’s revenue guidance was 2.4% above.
Luckily, social networking stocks have performed well with share prices up 18.8% on average since the latest earnings results.
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 $360.3 million, up 4.4% year on year. This print was in line with analysts’ expectations, and overall, it was an exceptional quarter for the company with an impressive beat of analysts’ EBITDA estimates.
“Yelp delivered record net revenue in the third quarter, driven by continued momentum in our Services categories,” said Jeremy Stoppelman, Yelp’s co-founder and chief executive officer.
Yelp delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Interestingly, the stock is up 7.3% since reporting and currently trades at $39.02.
Is now the time to buy Yelp? Access our full analysis of the earnings results here, it’s free.
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 $348.4 million, up 67.9% year on year, outperforming analysts’ expectations by 10.6%. The business had an exceptional quarter with EBITDA guidance for next quarter exceeding analysts’ expectations.
Reddit pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The company reported 48.2 million daily active users, up 50.6% year on year. The market seems happy with the results as the stock is up 109% since reporting. It currently trades at $170.53.
Is now the time to buy Reddit? Access our full analysis of the earnings results 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 $898.4 million, up 17.7% year on year, in line with analysts’ expectations. It was a mixed quarter as it posted an impressive beat of analysts’ EBITDA estimates but revenue guidance for next quarter slightly missing analysts’ expectations.
As expected, the stock is down 9.2% since the results and currently trades at $30.80.
Read our full analysis of Pinterest’s results here.
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 $65.61 million, up 17% year on year. This print topped analysts’ expectations by 5.1%. Overall, it was a very strong quarter as it also logged EBITDA guidance for next quarter exceeding analysts’ expectations.
The company reported 45.9 million monthly active users, up 13.6% year on year. The stock is down 8.9% since reporting and currently trades at $2.36.
Read our full, actionable report on Nextdoor here, it’s free.
Founded by Stanford University students Evan Spiegel, Reggie Brown, and Bobby Murphy, and originally called Picaboo, Snapchat (NYSE: SNAP) is an image centric social media network.
Snap reported revenues of $1.37 billion, up 15.5% year on year. This number topped analysts’ expectations by 1.1%. It was a strong quarter as it also produced a decent beat of analysts’ EBITDA estimates and solid growth in its users.
The company reported 443 million daily active users, up 9.1% year on year. The stock is up 11.3% since reporting and currently trades at $12.13.
Read our full, actionable report on Snap 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 has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), 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 the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.
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