If you have a child in high school, they likely will not know a world that didn’t include social media. And for better or worse, social media is here to stay. That’s because these companies have developed ways to keep their users engaged. And engagement is the keyword.
For the most part, social media companies generate money through ad revenue. Simply put, the more active (i.e. engaged) users they have, the more revenue they generate.
Higher revenue leads to earnings growth. And earnings growth is always a harbinger of a higher stock price. That’s why it’s important for investors to pay attention to this sector even if they’re not active users of social media themselves.
For the purposes of this presentation, we’re not including Facebook (NASDAQ:FB). The company is well known as the leading social media stock. However, the company’s recent troubles are also well documented. And as of this writing, FB stock remains under pressure. It may, and likely will become a buy and perhaps at a better valuation. But for now, Facebook doesn’t get a like.
But if you’re interested in which social media stocks may be good buys, we’re happy to give you “7 Social Media Stocks That Are Worth Your Attention”
Click the "Continue to Slide #1" button to view the first company.
