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Looking back on social networking stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including Pinterest (NYSE:PINS) and its peers.
Businesses must meet their customers where they are, which over the past decade has come to mean on social networks. In 2020, users spent over 2.5 hours a day on social networks, a figure that has increased every year since measurement began. As a result, businesses continue to shift their advertising and marketing dollars online.
The 5 social networking stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 2.5% while next quarter’s revenue guidance was 1.2% below.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Best Q4: Pinterest (NYSE:PINS)
Created with the idea of virtually replacing paper catalogues, Pinterest (NYSE: PINS) is an online image and social discovery platform.
Pinterest reported revenues of $1.15 billion, up 17.6% year on year. This print exceeded analysts’ expectations by 1.2%. Overall, it was a strong quarter for the company with EBITDA guidance for next quarter exceeding analysts’ expectations.
“2024 was a banner year for Pinterest, capped off by a milestone Q4 – achieving the company’s first billion-dollar revenue quarter and a record 553 million monthly active users, as we continue to drive profitable growth and free cash flow," said Bill Ready, CEO of Pinterest.
The stock is up 16.3% since reporting and currently trades at $39.08.
We think Pinterest is a good business, but is it a buy today? Read our full report here, it’s free.
Yelp (NYSE:YELP)
Founded by PayPal alumni Jeremy Stoppelman and Russel Simmons, Yelp (NYSE:YELP) is an online platform that helps people discover local businesses through crowd-sourced reviews.
Yelp reported revenues of $362 million, up 5.7% year on year, outperforming analysts’ expectations by 3.3%. The business performed better than its peers, but it was unfortunately a mixed quarter with an impressive beat of analysts’ EBITDA estimates.
Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 8.6% since reporting. It currently trades at $37.07.
Is now the time to buy Yelp? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Meta (NASDAQ:META)
Famously founded by Mark Zuckerberg in his Harvard dorm, Meta Platforms (NASDAQ:META) operates a collection of the largest social networks in the world - Facebook, Instagram, WhatsApp, and Messenger, along with its metaverse focused Reality Labs.