When it comes to what we know in 2018, things are moving at such a fast pace that even experts opinions seem divided. Social media stocks which would have been something many would have shied away from investing in 5 years ago are now becoming a staple of peoples’ investment portfolios.
Why is that? When we look at the way social media is being used across the internet, it’s now becoming one of the biggest driving forces for all content. With 81% of the US using social media compared to just 24% in 2008, platforms that have that much attention are bound to succeed.
It’s for that reason why many new investors are considering investing in what they know. In reality, using these social platforms and understanding what’s going well and isn’t can give you some real insight into the platform which is ideal for investing.
Where to start? Just read on below.
What to Invest in as a Newbie
With social media completely revolutionalizing the way we use the internet in the last ten years when considering what social media stocks to invest in you have a wide variety of choice.
You can go for a more gambled approach and invest in up and coming social networks like Vero. Alternatively, you can go for one of the ‘big three’ and jump into bed with Facebook who’s ad revenue is set to climb to dizzying heights since it’s Instagram ad strategy began ramping up.
You could even consider going for the king of digital ads and get on board with Google. Whatever you decide, remember that as a new investor, even if you’re trying for a freelancer retirement plan, you should always invest cautiously.
The Top 5 Social Media Stocks to Buy Now
So which are the top 5 social media stocks to invest in right now? Let’s take a look!
Ahh Google, the giant of digital ad revenue. In 2017, Google’s ad revenue amounted to over $95 billion, that’s a lot of money.
As the most visited site in the world, you can imagine it’s going to be high up on the list of who to invest in. Google has created a number of successful products over the years like Gmail and Google AdWords and some not so popular products, we’re looking at you Google Plus.
Google also owns Youtube which is the second most visited site in the world. Youtube has over a billion users since its purchase for $1.65 billion in 2006, the revenue that Google receives is mostly made up of ad revenue.
Being one of the largest forces online certainly makes Google a viable option for investment.
The big powerhouse of the online social media world. Facebook has risen to dominance since it’s inception in 2004, Facebook has the second largest ad revenue online, second to Google.
Many consider Facebook a savvy investment as like many online companies. They are always focused on putting the user experience first. They have also made a number of savvy investments in other tech platforms like Instagram and Whats app.
The $1 billion price tag Facebook paid for Instagram seems almost insignificant now compared to the amount of ad revenue Instagram is already contributing to Facebook’s bottom line.
As far as big companies go, it’s unlikely that Facebook will disappear, but will its price go up or down? Nobody really knows, but if you’re considering the best social media stocks to invest in, Facebook is a big consideration.
Many investors forget to consider Yahoo when talking about the different companies to invest in, but even today Yahoo is still a powerful force in the online world. In June 2017 Verizon purchased Yahoo for $4.5 billion. If you thought Yahoo was dead don’t forget it’s made up of a multitude of different sites including:
- Huffington Post
- Yahoo Sports
- BUILD studios
- Yahoo Finance
- Yahoo Mail
Quite a selection, with Verizon making the purchase it’s likely that they have some big plans for Yahoo, maybe it’s worth getting in on the action.
Facebook always seems to get all the attention in the stock exchange, especially considering it’s the fifth-largest company in the US stock market. However, one of its close tech rivals has recently been outpacing it regarding stock performance.
Twitter was up more than 23% in the last three months of 2017 and the gain took it to near 13-month highs.
Twitter in recent months has introduced some investor-pleasing initiatives such as increasing the character count from 140 to 280 in tweets and also unveiling a number of tools to give some business better access to data.
The big reason for Twitter being such a consideration, however, is for the first time since its inception, its losses have narrowed significantly. If the projected figures come in towards the high-end Twitter could be profitable for the first time since it’s inception.
Twitter’s revenue model comes from a combination of promoted Tweets, promoted accounts and promoted trends. Twitter has also seen a fairly steady rise in active monthly users.
With around 330 million active monthly users, which has been around the same number for all of 2017, is Twitter stagnant or just about to grow exponentially?
Linked-In has been an up and coming business network and offered something different to the rest of the social media landscape for a long time. Growing from 90 million to 467 million users in just six years, Linked-In’s growth has been rapid and consistent.
Linked-In was also purchased by Microsoft in December 2016 which has never failed to disappoint with innovations and opportunities. Linked-In has maintained a strong combination of daily visitors and daily pageviews making it a great option for social media investing.
As a business network, it also gives many businesses much greater opportunity for growth than the other types of networks.
Which Social Media Stocks Would You Want?
With such a wide variety of social media options to choose from, the hardest decision may be deciding where you want to consider investing. For tips on how to invest money online as a beginner, you can check out our blog for more information.