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The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how the social networking stocks have fared in Q3, starting with Pinterest (NYSE:PINS).
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 4 social networking stocks we track reported a mixed Q3; on average, revenues beat analyst consensus estimates by 2.8% while next quarter's revenue guidance was in line with consensus. Inflation (despite slowing) has investors prioritizing near-term cash flows, but social networking stocks held their ground better than others, with the share prices up 34.7% on average since the previous earnings results.
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 $763.2 million, up 11.5% year on year, topping analyst expectations by 2.7%. It was a mixed quarter for the company, with a decent beat of analysts' revenue estimates but slow revenue growth.
“We continued to accelerate the business in Q3,” said Bill Ready, CEO of Pinterest.
The stock is up 50.4% since the results and currently trades at $37.7.
Is now the time to buy Pinterest? Access our full analysis of the earnings results here, it's free.
Best Q3: Snap (NYSE:SNAP)
Founded by Stanford University students Evan Spiegel, Reggie Brown, and Bobby Murphy, and originally called Picaboo, Snapchat (NYSE: SNAP) is an image centric social media network.
Snap reported revenues of $1.19 billion, up 5.3% year on year, outperforming analyst expectations by 7%. It was a strong quarter for the company, with a beat of analysts' revenue estimates and solid growth in its user base.
Snap achieved the biggest analyst estimates beat among its peers. The company reported 406 million daily active users, up 11.8% year on year. The stock is up 75.6% since the results and currently trades at $17.05.
Is now the time to buy Snap? Access our full analysis of the earnings results here, it's free.
Weakest Q3: Nextdoor (NYSE:KIND)
Helping residents figure out what's happening on their block in real time, Nextdoor (NYSE:KIND) is a social network that connects neighbors with each other and with local businesses.