3 Social Media Stocks That Could Make Your Grandchildren Rich

Stocks to buy

Ever since social media was created, our lives have been continuously getting interconnected with each other as well as the internet. A number of social media platforms now have over a billion users and are actively researching and implementing ways to make its platform engaging with users. From texting friends and family members who live across the world to providing platforms where businesses can conduct digital advertisement, the applicability of social media has also evolved over the years. Recently, many social media companies have accomplished extensive growth and impressed investors with large returns. As society continues to interact with social media on a day-to-day basis, its presence in our lives will continue to grow. Thus, investors should look at 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 provides service in a wide range of areas from digital marketing to creative software systems. Specifically, it helps users customize and develop their content and application through their service. Adobe has more than 60% of the application development market share. 

One of the main positives about Adobe right now is its financials. In the second quarter 2024, Adobe had a revenue of $5.31 billion, a 10% increase year-over-year (YOY). Additionally, its net income was $1.57 billion, which was up more than 20% YOY. The company also raised its full year revenue outlook to $21.45 billion as opposed to initial $21.4 billion.

Compared to other tech giants, Adobe has had a relatively smaller growth with less than 100% growth in the past five years. However, as Adobe is continuing to attract new customers and with strong financials, investors have plenty of reasons to invest in Adobe. 

Meta (META)

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Meta (NASDAQ:META) has been a social media industry leader for decades after its founding in 2004. It owns other major social media platforms such as Instagram, WhatsApp and Facebook and has been dominating the industry.

Just this year, Meta stock is up over 50% and for the past 12 months, it is up 82%. Some investors might believe that Meta is now fully priced after bouncing back from late 2022 lows, but I believe there is room for even more growth.  

Just this year, Meta has joined its tech giant peers like Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) in distributing dividends. Furthermore, it has announced a $50 billion share buyback program. 

While a lot of the investors are skeptical about Meta’s aggressive investment into AI, it’s hard to ignore the company’s initial success. Meta has had successfully integrating generative AI into its social media platforms like Facebook and Instagram. It’s not too late to increase position in Meta instead of doubting that it is one of the social media stocks for long-term growth. 

Joyy (YY)

Source: Shutterstock

Joyy (NASDAQ:YY) is a Singapore based social media platform that specializes in video social media. The company operates multiple platforms, such as Bigo Live (live streaming), Hago (multiplayer social networking) and Likee (short videos). While it originated in Asia, it now attracts users from more than 150 countries globally.

Joyy’s most recent financials look strong. In Q1 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 outperformed. Joyy reported quarterly revenue of $546.56 million, while its net income was up more than 30% due to effective cost cutting and improved efficiency efforts.

Compared to its Western competitors, Joyy is trading at a much discounted price. Joyy boasts an appealing 5.84x trailing price to earnings ratio as of June 28, 2024. Investors should seriously consider buying Joyy before it gets expensive.

On the date of publication, Andy Kim did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Andy is a self-taught investor who is interested in ESG and socially responsible investing. He has managed the portfolio of a small investment fund and started his own research firm. Through his freelance writing on InvestorPlace, he hopes to find and share promising investments in companies with the goal of bettering the world.

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