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Unveiling the Power Players: 3 Top Social Media Stocks for Q2 Unveiling the Power Players: 3 Top Social Media Stocks for Q2

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Seen the TikTok vs. X buzz? Social mediaโ€™s clout is undeniable, shaping societal norms. On the financial front, social media platforms are a lucrative investment domain overseen by prosperous firms.

By 2024, social media ad spending is on track to hit nearly $220 billion, per Statista. As political ads surge due to the upcoming U.S. presidential elections, a 30% spike is projected this year, reaching $12.32 billionโ€”$3.45 billion (28%) allotted to online ads.

If Congress flags TikTok for a nationwide ban, American social media titans could thrive. TikTok, with 1.7 billion global users, is in the limelight. Here, we unravel three stellar social media stocks for your Q2 watchlist.

Reddit (RDDT)

Reddit (RDDT) paper logo lies with envelope full of dollar bills and smartphone. Reddit IPO

Source: Mehaniq / Shutterstock.com

Discuss social media stocks and Reddit, and itโ€™s hard not to spotlight the roomโ€™s elephant: Reddit (NYSE:RDDT).

Undeniably, RDDT carries risksโ€”unprofitable and with volatile shares, down 9% at the time of writing. Regardless, its IPO proved successful, trading 74% above its $34 debut.

Redditโ€™s journey to profitability is pivotal for stock growth. Presently, focus lies on robust growthโ€”73 million daily active users and a climbing user base driving ad revenue, the prime income source.

Overall, RDDTโ€™s IPO underscores investor zeal for fresh listings, especially in tech.

Meta Platforms (META)

In this photo illustration the Meta logo seen displayed on a smartphone and in the background the Facebook logo

Source: rafapress / Shutterstock.com

Meta Platforms (NASDAQ:META) garners attention for AI and VR, though social mediaโ€”Facebook, Instagram, and WhatsAppโ€”remains its core revenue source.

META soars 42% YTD boosted by user growth and ad site traction. Q4 2023 witnessed a 25% revenue surge, the quickest since mid-2021 post-Covid as online ads rebounded.

A prospective TikTok ban could elevate Meta stock. Reels, its short-video venue, stands ready to capture displaced TikTokers. Reelsโ€™ ad revenue rise signifies TikTok users seek a backup.

Pinterest (PINS)

Pinterest logo. PINS stock.

Source: Ink Drop / shutterstock

Pinterest (NYSE:PINS) stages a strong reboundโ€”up 24% in 12 months, showcasing financial recovery.

Post-pandemic adjustments saw a surge in monthly active users in Q4 2023. Forecasting $690-$705 million Q1 2024 revenue signifies 15%-17% annual growth. The Alphabet (NASDAQ:GOOG/GOOGL) partnership aiming at third-party online ads bodes well.

PINS soared 42% post its 2019 IPO.

Joel Baglole, a 20-year business journalist, has a long position in GOOGL. Opinions expressed are solely those of the writer and adhere to InvestorPlace.com Publishing Guidelines.

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The post 3 Strong Buy Social Media Stocks to Add to Your Q2 Must-Watch List appeared first on InvestorPlace.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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