Top Social Media Stocks to Buy on the Dip: July 2024
Pinterest (PINS): Pinterest's stock has fallen 16% since the end of June, but it's still up nearly 40% over the past year. Despite a recent downturn, the company’s financials are strong, with a 150% increase in profit year-over-year and positive developments from new partnerships, including one with Amazon. Investors might consider buying the dip before Pinterest rebounds.
Meta Platforms (META): While Meta Platforms is focusing heavily on AI and the Metaverse, its core social media platforms—Facebook, Instagram, and WhatsApp—continue to drive significant revenue. With Facebook’s daily users reaching 3.24 billion and advertising revenue up 27% year-over-year, META stock appears undervalued following an 11% drop in the last month. Strong Q2 results could reverse this trend.
Alphabet (GOOG/GOOGL): Alphabet’s YouTube, a major player in social media, boasts 2.5 billion monthly active users and nearly $30 billion in annual revenue. Although YouTube’s Q2 ad revenue fell short of expectations, Alphabet stock has declined 9% in the past month, presenting a potential buying opportunity.
Despite a rotation out of technology stocks, social media remains influential with nearly five billion users worldwide. Social media advertising is projected to grow significantly, making these stocks attractive investments as the sector continues to expand.
