We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is it Time to Buy Social Media Stocks Going into 2024?
Read MoreHide Full Article
An abundance of tech companies are showing signs of increased profitability amid easing inflation and investors might be wondering if social media operators will continue to benefit as well.
Meta Platforms (META - Free Report) certainly comes to mind and Pinterest (PINS - Free Report) and Snapchat formally known as Snap (SNAP - Free Report) are worthy of this conversation as well. Let’s see if now is a good time to buy these social media stocks going into 2024.
Recent Performance Overview
Renowned for one of the world’s most popular social media platforms in Facebook, Meta Platform's stock has spiked +195% in 2023 to help yield the strong performance of the Nasdaq this year.
Providing a visual recommendation platform where users can interact based on their tastes and interests, Pinterest’s stock has climbed +53% YTD with Snap shares soaring +87% as a mobile camera application that allows people to communicate through short videos and images called Snaps.
Image Source: Zacks Investment Research
Growth Trajectories
Social media platforms collect most of their revenue from advertising and ad spending has continued to bounce back upon easing inflation. No one has benefited more from the resurgence in ad spending than Meta Platforms, with the trend of earnings estimate revisions for both fiscal 2023 and FY24 rebounding and rising sharply over the last year.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
Rising EPS estiamtes have continued to propel Meta Platforms stock with annual earnings now projected to soar 45% this year and climb another 23% in FY24 to $17.57 per share.
Image Source: Zacks Investment Research
The growth and recovery of Pinterest and Snap’s bottom line continues to be compelling as well. To that point, Pinterest’s annual earnings are forecasted to more than double in FY23 at $1.07 per share versus $0.62 a share last year. Fiscal 2024 EPS is expected to expand another 20% to $1.29 per share. More importantly, over the last 60 days, FY23 and FY24 EPS estimates have risen 10% and 11% respectively.
Image Source: Zacks Investment Research
As for Snap, earnings are anticipated at $0.06 a share in FY23 compared to $0.17 a share last year but FY24 EPS is forecasted to rebound and soar 126% to $0.13 a share. Plus, FY23 and FY24 EPS estimates are slightly up over the last 30 days.
It’s also noteworthy that like Meta Platforms and Pinterest, Snap is expecting double-digit top line growth next year as well with sales forecasted to be up 13% in FY24 to $5.24 billion.
Image Source: Zacks Investment Research
Bottom Line
At the moment, Meta Platforms, Pinterest, and Snap’s stock all land a Zacks Rank #2 (Buy). Notably, each of these social media stocks has an “A” Zacks Style Scores grade for Growth as they continue to look like strong investments going into 2024.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is it Time to Buy Social Media Stocks Going into 2024?
An abundance of tech companies are showing signs of increased profitability amid easing inflation and investors might be wondering if social media operators will continue to benefit as well.
Meta Platforms (META - Free Report) certainly comes to mind and Pinterest (PINS - Free Report) and Snapchat formally known as Snap (SNAP - Free Report) are worthy of this conversation as well. Let’s see if now is a good time to buy these social media stocks going into 2024.
Recent Performance Overview
Renowned for one of the world’s most popular social media platforms in Facebook, Meta Platform's stock has spiked +195% in 2023 to help yield the strong performance of the Nasdaq this year.
Providing a visual recommendation platform where users can interact based on their tastes and interests, Pinterest’s stock has climbed +53% YTD with Snap shares soaring +87% as a mobile camera application that allows people to communicate through short videos and images called Snaps.
Image Source: Zacks Investment Research
Growth Trajectories
Social media platforms collect most of their revenue from advertising and ad spending has continued to bounce back upon easing inflation. No one has benefited more from the resurgence in ad spending than Meta Platforms, with the trend of earnings estimate revisions for both fiscal 2023 and FY24 rebounding and rising sharply over the last year.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
Rising EPS estiamtes have continued to propel Meta Platforms stock with annual earnings now projected to soar 45% this year and climb another 23% in FY24 to $17.57 per share.
Image Source: Zacks Investment Research
The growth and recovery of Pinterest and Snap’s bottom line continues to be compelling as well. To that point, Pinterest’s annual earnings are forecasted to more than double in FY23 at $1.07 per share versus $0.62 a share last year. Fiscal 2024 EPS is expected to expand another 20% to $1.29 per share. More importantly, over the last 60 days, FY23 and FY24 EPS estimates have risen 10% and 11% respectively.
Image Source: Zacks Investment Research
As for Snap, earnings are anticipated at $0.06 a share in FY23 compared to $0.17 a share last year but FY24 EPS is forecasted to rebound and soar 126% to $0.13 a share. Plus, FY23 and FY24 EPS estimates are slightly up over the last 30 days.
It’s also noteworthy that like Meta Platforms and Pinterest, Snap is expecting double-digit top line growth next year as well with sales forecasted to be up 13% in FY24 to $5.24 billion.
Image Source: Zacks Investment Research
Bottom Line
At the moment, Meta Platforms, Pinterest, and Snap’s stock all land a Zacks Rank #2 (Buy). Notably, each of these social media stocks has an “A” Zacks Style Scores grade for Growth as they continue to look like strong investments going into 2024.