Since the advent of social media, our lives have been constantly connected to each other and the internet. Numerous social media platforms now have over a billion users and are actively researching and implementing ways to make their platform more engaging for users. From texting friends and family living around the world to providing platforms where businesses can run digital advertisements, the applicability of social media has also evolved over the years. Recently, many social media companies have achieved extensive growth and impressed investors with high returns. As society continues to interact with social media on a daily basis, its presence in our lives will continue to grow. Therefore, investors should eye the social media market with long-term potential. Below are the three social media stocks for long-term growth that could make your grandchildren rich.
Adobe (ADBE)
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Adobe (NASDAQ:ADBE) is an American multimedia company based in California. The media giant offers services in many areas, from digital marketing to creative software systems. In particular, it helps users customize and develop their content and applications through its service. Adobe has a market share of over 60% in the application development field.
One of Adobe’s biggest plus points right now is its financials. In the second quarter of 2024, Adobe reported revenue of $5.31 billion, up 10% year-over-year. In addition, net income was $1.57 billion, up more than 20% year-over-year. The company also raised its full-year revenue forecast to $21.45 billion from the original $21.4 billion.
Compared to other tech giants, Adobe has experienced relatively low growth of less than 100% over the past five years. However, as Adobe continues to attract new customers and has strong financials, investors have many reasons to invest in Adobe.
Meta (META)
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Meta (NASDAQ:META) has been a leader in the social media industry for decades since its founding in 2004. The company owns other major social media platforms such as Instagram, WhatsApp, and Facebook, and dominates the industry.
Meta stock is up over 50% this year alone and 82% in the past 12 months. Some investors may believe Meta is now fully valued after recovering from the late 2022 lows, but I believe there is still room for further growth.
Only this year, Meta joined its tech giants, such as Apple (NASDAQ:AAPL) And Microsoft (NASDAQ:MSFT) in dividend payments. In addition, the company has announced a share buyback program worth $50 billion.
Although many investors are skeptical of Meta’s aggressive investments in AI, it’s hard to ignore the company’s initial success. Meta has successfully integrated generative AI into its social media platforms like Facebook and Instagram. It’s not too late to increase the position in Meta rather than doubt that it is one of the social media stocks with long-term growth.
Joyy (JJ)
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Joyy (NASDAQ:JJ) is a Singapore-based social media platform that specializes in video social media. The company operates several platforms, such as Bigo Live (live streaming), Hago (multiplayer social networking) and Likee (short videos). Although it originated in Asia, it now attracts users from over 150 countries worldwide.
Joyy’s latest financials look strong. In the first quarter of 2024, Joyy reported earnings per share of $1.02, beating analyst estimates of 81 cents. In terms of revenue, the social media giant once again beat expectations. Joyy reported quarterly revenue of $546.56 million, while net income increased by more than 30% due to effective cost-cutting and efficiency improvement efforts.
Compared to its Western peers, Joyy is trading at a significantly discounted price. Joyy has an attractive price-to-earnings ratio of 5.84 as of June 28, 2024. Investors should seriously consider buying Joyy before it gets expensive.
At the time of publication, Andy Kim had no position (either directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com Publishing guidelines.
