The social media space continues to represent one of the most powerful investment opportunities for investors over the long-term. From a marketing standpoint, it has become the only game in town.
According to a new report out this year from SmartInsights.com, more than half of the world’s population now uses social platforms on the internet. Furthermore, the younger users – the Millennials and Zoomers – are more likely than other groups to make consumer decisions based on research that includes social networks. In fact, nearly 50% of all consumers aged 26-34 years old research products online via social networks before making purchase decisions.
One can assume that, ten years down the road, these statistics will simply be more striking.
In other words, some percentage of all consumer activity will go to companies levered to the social media space. That percentage is already material, and will only grow in the years ahead.
With that in mind, we take a closer look at some of the most interesting names in the social media marketplace, including Facebook (NASDAQ: FB), Twitter (NYSE: TWTR), Clubhouse Media Group Inc (OTC US: CMGR), and Snap Inc (NYSE: SNAP).
Facebook Inc (NASDAQ: FB) bills itself as a company that provides various products to connect and share through mobile devices, personal computers, and other surfaces worldwide.
Its products include Facebook Website and mobile application that enables people to connect, share, discover, and communicate with each other on mobile devices and personal computers; Instagram, a community for sharing visual stories through photos, videos, and direct messages; Messenger, a messaging application to communicate with other people, groups, and businesses across various platforms and devices; and WhatsApp, a mobile messaging application.
Facebook Inc (NASDAQ: FB) most recently reported financial results for the quarter ended March 31, 2021, including daily active users of 1.88 billion on average for March 2021, an increase of 8% year-over-year, and monthly active users of 2.85 billion as of March 31, 2021, an increase of 10% year-over-year.
“We had a strong quarter as we helped people stay connected and businesses grow,” said Mark Zuckerberg, Facebook founder and CEO. “We will continue to invest aggressively to deliver new and meaningful experiences for years to come, including in newer areas like augmented and virtual reality, commerce, and the creator economy.”
It will be interesting to see if the stock can break out of its recent sideways action. Over the past week, the stock is net flat, and looking for something new to spark things. Shares of the stock have powered higher over the past month, rallying roughly 5% in that time on strong overall action.
Facebook Inc (NASDAQ: FB) pulled in sales of $26.2B in its last reported quarterly financials, representing top line growth of 47.6%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($64.5B against $12.7B).
Twitter Inc (NYSE: TWTR) bills itself as a platform for public self-expression and conversation in real time United States and internationally. The company offers various products and services, including Twitter, a platform that allows users to consume, create, distribute, and discover content; and Periscope, a mobile application that enables user to broadcast and watch video live with others. It also provides promoted products and services, such as promoted tweets, promoted accounts, and promoted trends, which enable its advertisers to promote their brands, products, and services.
In addition, the company offers a set of tools and public application programming interfaces for developers to contribute their content to its platform, syndicate and distribute Twitter content across their properties, and enhance their Websites and applications with Twitter content. Further, it provides subscription access to its public data feed for data partners.
Twitter Inc (NYSE: TWTR) most recently announced financial results for its first quarter 2021, including Q1 revenue that totaled $1.04 billion, an increase of 28% year-over-year, and Q1 costs and expenses that totaled $984 million, an increase of 21% year-over-year.
“People turn to Twitter to see and talk about what’s happening, and we are helping them find their interests more quickly while making it easier to follow and participate in conversations,” said Jack Dorsey, Twitter’s CEO. “Average monetizable DAU (mDAU) reached 199 million, up 20% year over year and up 7 million sequentially, driven by ongoing product improvements and global conversation around current events.”
The context for this announcement is a bit of a bid, with shares acting well over the past five days, up about 5% in that timeframe. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -19%.
Twitter Inc (NYSE :TWTR) generated sales of $1B, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of -19.6% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($8.8B against $2B).
Clubhouse Media Group Inc (OTCMKTS: CMGR) is an interesting addition to this list given its massive social media reach. However, this isn’t a social platform. It’s an influencer-based marketing machine with a rapidly growing dominant position in terms of total reach and a plan to begin marketing its own branded products through its network.
The company has already built a global blue-chip marketing apparatus in the form of its social media influencer-based platform, which has already grown to a reach of nearly 300 million potential customers through the company’s team of top-tier influencers. That number has doubled in the past six months. It may double again in the next six.
Clubhouse Media Group Inc (OTCMKTS :CMGR) most recently announced that its AI subsidiary, Magiclytics, is now live and had signed its first client: Pink and Blue Co, a California-based online jewelry and fine goods company focused on commemorative pieces related to childbirth.
“Pink and Blue offers an excellent case study example of how Magiclytics can provide deep and disruptive value in the social media marketing space,” commented Wilfred Man, Founder and CEO of Magiclytics.
“The Pink and Blue team knows how to produce amazing fine goods for their niche consumer, and they know influencer-based marketing is the best way to build their brand. But they have previously lacked visibility in trying to implement influencer-based marketing strategies – like driving in an unfamiliar area with no GPS or map. Magiclytics has proprietary analytics that can offer unique guidance and intelligence in that process, including how much response to expect and how to maximize it. We look forward to helping Pink and Blue find breakthrough success.”
Clubhouse Media Group Inc (OTCMKTS: CMGR) has pulled back sharply since trading above $20/share earlier this year. But the pullback has not been spurred by poor growth data or bad fundamental changes. The stock simply got ahead of itself earlier this year and then pulled back with other growth-oriented speculative plays. If anything, the growth prospects for the company have improved with its jump in overall influencer reach in the past three months, suggesting CMGR shares may be undervalued at present levels, depending on execution by management ahead.
Snap Inc (NYSE: SNAP) trumpets itself as a firm that operates as a camera company in the United States and internationally.
The company offers Snapchat, a camera application that helps people to communicate through short videos and images. It also provides Camera, a tool to personalize and add context to Snaps; Friends Page that allows to creating and watching stories, chatting with groups, making voice and video calls, and communicating through a range of contextual stickers and Bitmojis; and Discover that helps to surface the most interesting stories from publishers, creators, and the community, based on a user’s subscriptions and interests.
Snap Inc (NYSE: SNAP) most recently announced the next generation of Spectacles, Snap’s first pair of display glasses designed for creators to overlay their Lenses directly onto the world.
According to the company’s release, Spectacles are the next step in Snap’s journey to reinvent the camera. Over time, Snap’s innovations across camera hardware and software technology have evolved to help Snapchatters express themselves, communicate with friends, and learn about the world. Each generation of Spectacles has served as a building block in our journey with the creator community, and now the new Spectacles bring imagination to life in a natural way—with our eyes looking out at the world in front of us.
And the stock has been acting well over recent days, up something like 7% in that time.
Snap Inc (NYSE: SNAP) pulled in sales of $769.6M in its last reported quarterly financials, representing top line growth of 66.4%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($2.6B against $751.9M).
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