Social Media Stocks To Invest In
Social media, it’s inescapable and it seems to have become a part of the very fabric of our existence. A few years ago it was optional, now it seems indispensable and for myriad of reasons too. Work connections, family connections, all kinds of connections – this is essence of the various social media platforms – making connections and staying connected. However, the practical usage of social media platforms extend well beyond the realms of just staying in touch. Many users have used these platforms for financial gain and an increase in popularity. The apps themselves – Facebook, Instagram and Twitter (the big three) are valued in the billions and listed on the stock exchange, which then brings about a key question if you’re in the market to invest: which social media stocks should you be investing in?
Let’s start with the obvious contender. Some playfully call it the bane of our existence and if the last presidency of the US is anything to go by, then such critics might be right! Facebook has been accused of being a tool to incite dissension, but it’s certainly not alone. The very algorithms employed by web-based tools such as Facebook and Google have not always steered us as a species in the right direction. Social issues aside, Facebook has a net-worth of $527 billion dollars with an average share price of $260. This tech giant might very well be worth your hard-earned cash. However, at an average share price of $260, it’s fair to assume that not everyone can simply get in on the action, and that’s why investing in social media using CFD might be a more feasible avenue to explore. For one thing you’ll need much less capital if you invest using CFD (Contract For Difference), because it means that you’ll speculate on the share price as opposed to actually buying the share. It also means that potential profits can occur much quicker.
In recent times Twitter might have been used by social media influencer and former president of the United States Donald Trump to incite an insurrection, once again displaying the dark side of social media, but with a share price of $55 it’s certainly one of the more affordable social media stocks to invest in. Even though it’s low in comparison to Facebook, it still has what some might deem to be a prohibitive share price, which once again makes it a prime stock candidate for CDF trading. Most regulated online trading companies offer demo accounts and this facilitates a practice trading platform. Hence, if you’re going to invest in Twitter, you can literally do it in a simulated environment and not incur a dent in your wallet.
If there’s one social media company that went from obscurity straight into the limelight, it would have to be Zoom. In 2020 Zoom’s share price shot up by an incredible 600% in large part due to the pandemic. It’s use has now practically become ubiquitous in both business and personal endeavours, so much so that it’s toppled Skype’s near 20 year reign as the champion of video calls. The reasons for Skype’s sudden decline has actually been a few years in the making, going all the way back to 2011 when Microsoft purchased the communication giant for an unheard of $8.5 billion. While Microsoft toyed with various ways to improve Skype and make it more sexy, it lost sight of what made Skype great in the first place – great video calls. And so, in the background, Zoom began to hone its technology and in 2020, what could be considered as the perfect storm, gave Zoom the opportunity it was waiting for. Currently this tech giant’s share price sits at a whopping average of $415.