It’s not exactly a challenge to look at the broader economy and figure that, maybe, social media stocks won’t have a good run of things in the near term. This is thanks to a decline in advertising as consumers pull back on their wallets and batten down their collective hatches. But new analyst reports suggest that a turnaround may already be in progress, even if investors in Google (NASDAQ:GOOG), Meta Platforms (NASDAQ:META), and Snap (NASDAQ:SNAP) don’t seem to agree. All three are down in Friday morning’s trading.
Analysts from both Bank of America and Deutsche Bank have good news for social media companies – there are signs of life in the digital ad market. However, the signs are a bit sporadic, the reports note, as Google and Meta are the major beneficiaries right now. On the other hand, Snap’s recovery will likely take some time.
Google is gaining not only for its search operations but also for its YouTube arm, which is showing signs of increasing momentum despite growing user unrest over issues of ad blockers. Meanwhile, over at Meta, Reels monetization is picking up steam, and Meta’s use of artificial intelligence in advertising measurement is likewise helping out.
Which Social Media Stocks are a Good Buy Right Now?
Turning to Wall Street, SNAP stock offers the lowest upside potential at 3.13% thanks to its average price target of $9.89. Meanwhile, META stock offers the highest upside at 22.26% due to an average price target of $376.42.
