Investing in social media stocks offers investors an excellent opportunity for growth because the industry is growing rapidly, with 4.95 billion global users in 2023. This remarkable size emphasizes the impact of social media on international communication. It also highlights just how profitable social media stocks can be.
Analysts forecast that the social media industry will reach 5.85 billion users by the end of 2027, almost a 1 billion increase from today. This projected surge also underscores social media platforms’ continued global expansion and influence.
Without further delay, let’s see the top-rated social media stocks that analysts recommend buying now.
Meta Platforms (META)
Meta Platforms (NASDAQ:META), known for Facebook, WhatsApp and Instagram, is the face of social media. Its shares also continue to grow, up 180% over the past year.
Moreover, Meta has outperformed in Q3 this by raising its revenue to $34.15 billion, a 23% increase year over year. Its earnings per share also increased to $4.39, beating analysts’ expectations.
Furthermore, Meta’s innovation gives it a prominent position in the market. In September, Meta released the latest Quest 3 virtual reality headset. It also recently released the Meta AI chatbot on WhatsApp and Instagram. This will be the game-changer for the company. According to experts, this new AI feature will play a significant part in the company’s growth.
TipRanks rates Meta as a “strong buy” stock, and Wall Street analysts forecast that META will hit $422 in 2024 and $522 in 2025, making it a great addition to any investor’s portfolio.
Pinterest (PINS)
Pinterest (NYSE:PINS) is another top social media stock that analysts are loving right now, with shares up 50% over the past year. The company’s Q3 results also showed its financial strength, with revenue reaching $763 million, up 11% year over year.
Furthermore, the company hit 482 million monthly active users worldwide in Q3, up by 17 million users from the previous quarter. With the increase in its user base, Pinterest now can focus on defining the perfect product – blending visual search, shopping, and discovery.
Wall Street analysts give a “moderate buy” rating to Pinterest and forecast that the stock will grow to the average target of $35.80, an 11% increase in the next 12 months. With all these positive forecasts, Pinterest is another worthy portfolio addition.
Match Group (MTCH)
Match Group (NASDAQ:MTCH), the parent company of popular dating apps Tinder, Hinge and Match.com, has seen significant growth since the emergence of Covid-19.
However, its shares are down 25% over the last 12 months as consumers get back outside and as the dating app competition heats up.
But the story isn’t over yet for MTCH stock.
Q3 results show the company’s continuing growth, with revenue reaching $882 million. Furthermore, Match Group is focusing on tackling security issues to retain its users. The company recently introduced the “Are You Sure?” feature, issuing real-time warnings to users regarding potentially harmful language in their messages.
According to TipRanks, analysts give Match Group a “moderate buy” rating and forecast a 12-month average stock price of $45.78. With these encouraging forecasts, I suggest that investors add Match Group stock to their portfolios.
On the date of publication, Nauman Khan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
