Every week, Benzinga conducts a sentiment survey to understand what traders are most excited about, interested in or thinking about as they manage and build their personal portfolios.
This week, we asked a group of over 250 traders and investors about five of the world’s most prominent social media firms by market capitalization.
Best Social Media Stock
Over the next five years, which social media stock will have the largest percentage gain?
During this week’s study, 42.4% of respondents told us Zoom would grow the most by 2025. Zoom reported a 355% second-quarter revenue increase and a 458% year-over-year increase in client accounts. Zoom shares trade around $480 at publication time.
As the world stemming from COVID-19, Zoom not only allows students and working professionals to connect for classes and meetings, but also allow for general social interaction via video calls.
About 31% of traders and investors back Facebook as the stock that would experience the largest percentage gain in the next five years.
The social media conglomerate is known for more than its newsfeeds, having acquired Instagram, WhatsApp, Oculus VR and Giphy in recent years. Facebook trades around $262 per share.
Respondents were less confident about the future price of Pinterest, which garnered only 12% of support. Per Pinterest’s second-quarter earnings report, there is some room for optimism as the company saw ad business revenue increase 4% year-over-year. Pinterest trades at $43.52 per share.
Fellow social media platforms Twitter and Snapchat lagged behind, receiving 8% and 6% of votes, respectively.
In the second quarter, Twitter reported revenue of $683,438,000, a decrease of 18.77% year over year. This figure missed analyst consensus estimates of $704,460,000. As of publishing, shares of Twitter trade at $45.99.
Meanwhile, Snapchat's user base has seen marked growth in 2020. In the second quarter, Snap reported daily active users were up 17% year-over-year. Snap trades at $27.09 a share.
This survey was conducted by Benzinga in September 2020 and included the responses of a diverse population of adults 18 or older.
Opting into the survey was completely voluntary, with no incentives offered to potential respondents. The study reflects results from over 250 adults.