3 top social media stocks for August: META, TWTR, SNAP, GOOGL, PINS
Stocks of Meta Platforms, Inc. (NASDAQ: META), Twitter Inc. (NYSE: TWTR) and Alphabet Inc.
(NASDAQ: GOOGL), have recently been trending following their quarterly earnings release.
The social media subsector has been growing at a significant pace in recent years, and
the COVID-19 pandemic bumped up this speed to an even greater extent. SNAP Inc has also
recorded a significant loss of 79.49 per cent this year partly due to disappointing earnings.
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So, let's explore some of the top social media stocks that could continue to be on the investors'
radar in August.
Meta Platforms, Inc. (NASDAQ: META)
The social media company, formerly known as Facebook, held a market cap of US$ 431.88
billion as of writing. META stocks gained traction after it released its earnings results
on July 27 after the closing bell.
The Menlo Park, California-based company posted total revenue of US$ 28.82 billion in Q2 FY22,
down by one per cent from US$ 29.07 billion in the year-ago quarter. This is said to be
the first time the company reported a decline in its quarterly revenue.swq
Its net income plummeted 36 per cent year-over-year (YoY) to US$ 6.68 billion, or 32 per cent
to US$ 2.46 per diluted share, in Q2 FY22.
Its daily active users or DAUs increased at a three per cent YoY rate to 1.97 billion
on average for June 2022.
META stock notched a sharp decline this year, falling about 52.76 per cent. On an annual
basis, it dropped by 57.41 per cent. However, at its trading price on July 28, META stock
was 3.28 per cent higher than its 52-week low of US$ 154.25 (June 23, 2022).
Twitter, Inc. (NYSE: TWTR)
TWTR stock has been fluctuating since Tesla CEO Elon Musk unveiled his plan to acquire
the social media and microblogging company in April. Since then, it has been one of
the hottest topics marking several twists.
However, the company has gained the limelight following its quarterly earnings release on
July 22.
Twitter's monetizable daily active usage (mDAU) was 237.8 million in Q2 FY22, increasing at
a rate of 16.6 per cent YoY. It marked a one per cent decline in its second quarter fiscal
2022 revenue of US$ 1.18 billion. Notably, its revenue from advertisement soared two
per cent YoY to US$ 1.08 billion.
The San Francisco, California-based firm posted a net loss of US$ 270 million, or US$ 0.35
per diluted share in Q2 FY22, a notable drop from an income of US$ 66 million, or US$ 0.08
per diluted share in Q2 FY21.
TWTR stock fell 6.28 per cent year-to-date (YTD) and 42.10 per cent in one year. However,
in the last six months, it showed gains of 19.75 per cent.
Alphabet Inc. (NASDAQ: GOOGL)
The Google parent lost 21.42 per cent YTD, while declining 16.36 per cent in the last
12 months. However, GOOGL stock returned gains of 4.45 per cent this month and rose 5.44
per cent this week.
The US$-1.49 trillion market cap company had a relative strength index (RSI) of 52.39 as
of July 28, Refinitiv data showed. RSI between 50 and 70 generally indicates that the stock
is currently in a stable state.
Alphabet's revenue grew at a rate of 13 per cent YoY to US$ 69.68 billion in Q2 FY22.
Its net income was US$ 16 billion, or US$ 1.21 per diluted share, in Q2 FY22. In contrast,
the net income of the Mountain View, California-based firm was US$ 18.52 billion, or US$ 1.36 per
diluted share, in the fiscal 2021 second quarter.
Bottom line
The communication services segment was among the worst-hit sectors this year, with the
S&P 500 Communication Services sector plunging 27.89 per cent YTD and slipping about 29 per
cent on an annual basis.
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