Wrapping up Q2 earnings, we look at the numbers and key takeaways for the social networking stocks, 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 4 social networking stocks we track reported a weak Q2; on average, revenues missed analyst consensus estimates by 3.64%, while on average next quarter revenue guidance was 10.3% under consensus. There has been a stampede out of high valuation technology stocks as raising interest encourage investors to value profits over growth again, but social networking stocks held their ground better than others, with share price down 4.15% since the previous earnings results, on average.
Weakest Q2: Meta (NASDAQ:META)
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 Facebook Reality Labs.
Meta reported revenues of $28.8 billion, down 0.88% year on year, missing analyst expectations by 0.44%. It was a weak quarter for the company, with a slow revenue growth and an underwhelming revenue guidance for the next quarter.
The company reported 3.65 billion monthly active people, up 3.98% year on year. The stock is down 13.7% since the results and currently trades at $146.09.
Is now the time to buy Meta? Access our full analysis of the earnings results here, it's free.
Best Q2: Snap (NYSE:SNAP)
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 $1.11 billion, up 13.1% year on year, missing analyst expectations by 2.07%. It was an ok quarter for the company, with a growing number of users.
Snap pulled off the fastest revenue growth among its peers. The company reported 347 million daily active users, up 18.4% year on year. The stock is down 32.4% since the results and currently trades at $11.06.
Is now the time to buy Snap? Access our full analysis of the earnings results here, it's free.
Born out of a failed podcasting startup, Twitter (NYSE: TWTR) is the town square of the internet, one part social network, one part media distribution platform.
Twitter reported revenues of $1.17 billion, down 1.16% year on year, missing analyst expectations by 11.9%. It was a weak quarter for the company, with a slow revenue growth and a miss of the top line analyst estimates.
Twitter had the weakest performance against analyst estimates and slowest revenue growth in the group. The company reported 237.8 million daily active users, up 15.4% year on year. The stock is up 5.01% since the results and currently trades at $41.54.
Twitter has previously entered into a definitive agreement to be acquired by Elon Musk, for $54.20 per share in cash in a transaction valued at approximately $44 billion.
Created with the idea of virtually replacing paper catalogues, Pinterest (NYSE: PINS) is an online image and social discovery platform.
Pinterest reported revenues of $665.9 million, up 8.59% year on year, missing analyst expectations by 0.09%. It was a weak quarter for the company, with declining number of users and a slow revenue growth.
Pinterest scored the strongest analyst estimates beat among the peers. The company reported 433 million monthly active users, down 4.63% year on year. The stock is up 24.5% since the results and currently trades at $24.76.
The author has no position in any of the stocks mentioned