The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s have a look at how the social networking stocks have fared in Q2, starting with Snap (NYSE:SNAP).
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 2.4% since the previous earnings results, on average.
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.
“While the continued growth of our community increases the long-term opportunity for our business, our financial results for Q2 do not reflect our ambition," said Evan Spiegel, CEO.
Snap scored the fastest revenue growth of the whole group. The company reported 347 million daily active users, up 18.4% year on year. The stock is down 31% since the results and currently trades at $11.29.
Is now the time to buy Snap? 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 $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 pulled off the strongest analyst estimates beat among its peers. The company reported 433 million monthly active users, down 4.63% year on year. The stock is up 28% since the results and currently trades at $25.45.
Is now the time to buy Pinterest? Access our full analysis of the earnings results here, it's free.
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 12.3% since the results and currently trades at $148.41.
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 among the peers. The company reported 237.8 million daily active users, up 15.4% year on year. The stock is up 5.77% since the results and currently trades at $41.84.
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.
The author has no position in any of the stocks mentioned