(C) Reuters 3 Social Media Stocks Wall Street Predicts Will Rally by 15% or More
With the COVID-19 pandemic having catalyzed increased use of social media platforms, and with companies adjusting their marketing strategies to grab the attention of consumers on these platforms, companies in the social media space have been generating solid growth in advertising revenues. Businesses’ growing social media marketing budgets have caught Wall Street analysts’ attention and made optimistic about the upside potential of social media stocks Snap (SNAP), Twitter (TWTR), and Bumble (BMBL). Let’s discuss.The increasing penetration of mobile, tablet and other electronics and the embrace of remote lifestyles during the COVID-19 pandemic are continuing to drive the social media market. Consequently, the global social media market is estimated to grow at a 32% CAGR between 2020 – 2025 to hit $308.96 billion.
According to a recent survey, on average Americans spend 2 hours and 7 minutes daily on social media. In response to this, businesses are increasing their budgets for social media marketing and advertising to secure the attention of the huge user base on these platforms. This is driving solid ad revenues for the social media companies. Consequently, the industry is enjoying favorable investor sentiment, as evidenced by the Global X Social Media ETF’s (SOCL) 77.9% returns over the past year versus the SPDR S&P 500 Trust ETF’s (SPY) 38.1% gains.
Given this backdrop, Wall Street analysts expect the shares of financially-strong social media companies Snap Inc . (NYSE:SNAP), Twitter, Inc. (TWTR), and Bumble Inc. (BMBL) to witness a strong rally in the near term.
3 Social Media Stocks Wall Street Predicts Will Rally by 15% or More
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