As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q2. Today we are looking at the social networking stocks, starting with Twitter (NYSE:TWTR).
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. Technology stocks have been hit hard on fears of higher interest rates as investors search for near-term cash flows and while some of the social networking stocks have fared somewhat better than others, they have not been spared, with share prices declining 7.81% since the previous earnings results, on average.
Twitter (NYSE:TWTR)
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 Total Revenue](https://news-assets.stockstory.org/chart-images/Twitter-Total-Revenue_2022-09-30-071046_yelf.png)
Twitter delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. The company reported 237.8 million daily active users, up 15.4% year on year. The stock is up 8.73% since the results and currently trades at $43.01.
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.
Read our full report on Twitter 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%. Despite the stock dropping on the results, it was an ok quarter for the company, with a growing number of users.
![Snap Total Revenue](https://news-assets.stockstory.org/chart-images/Snap-Total-Revenue_2022-09-30-071048_qehi.png)
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 37.7% since the results and currently trades at $10.20.
Is now the time to buy Snap? 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 stock is down 19.1% since the results and currently trades at $136.93.
Read our full analysis of Meta's results here.
Pinterest (NYSE:PINS)
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 a declining number of users and a slow revenue growth.
Pinterest pulled off 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 16.8% since the results and currently trades at $23.23.
Read our full, actionable report on Pinterest here, it's free.
The author has no position in any of the stocks mentioned