The way business used to be done has changed, and the share of transactions, marketing and sales taking place in the new digital economy is growing. Gone are the days of door-to-door selling, unless it’s selling a power washing service or solar panels, which have many limitations in terms of efficiency and scalability. Today’s business environment is turning to and focusing on online sales as that is where the attention is.
The license to market and sell a product has been granted to almost anyone with a relative level of expertise in a particular field or subject, and monetization procedures have become easier and more accessible than ever before. For this reason, more and more companies will have to switch to doing everything online, from back-end operations to advertising and sales funnels.
That’s why it’s important to consider which technology stocks are currently dominating the space and which are quickly catching up in future portfolios. Stocks like Meta Platforms Inc Nasdaq: Meta, Alphabet company Nasdaq:GoogleAnd even reddit company New York Stock Exchange: RDT or Spotify technology New York Stock Exchange: Spot It will see a greater share of online business activity in the coming years, as the cycle from advertising to becoming a market accelerates in those as well.
The dominance of leading social media platforms continues to grow
according to Recent measures taken by StatistaAs of April 2024, the leaders in social media market share should come as no surprise. Measured by monthly active users (MAUs), Facebook was the leader with 3 billion, followed by YouTube with 2.5 billion and Instagram with 2 billion.
This is also where most business is done today; Facebook operates as its own marketplace, equipped with payment systems, marketing tools, and the ability to manage advertising campaigns and other strategies. When it comes to YouTube, the trend also remains in the sense that businesses and individuals can get a production team to create high-quality videos and then take the audience to their websites or other traffic sources, converting views into sales.
Instagram is basically interchangeable with YouTube. The only major difference is that Instagram offers shorter content, where businesses can offer their “promotions.”
Alphabet today
(As of 12/12/2024 ET)
- 52 week range
- $129.68
▼
$195.61
- Dividend yield
- 0.42%
- P/E ratio
- 25.46
- Price target
- $206.08
This is where Meta and Google dominate the market, and Wall Street knows all about it.
As of October 2024, analysts at Pivotal Research have decided to maintain their Buy rating on Google stock and have also set a $225 price target for the company.
For these views to be true, the stock would have to see a 21.5% rise from where it trades today, not the common forecast for the $2.2 trillion giant.
Meta platforms today
(As of 12/12/2024 ET)
- 52 week range
- $328.64
▼
$638.40
- Dividend yield
- 0.32%
- P/E ratio
- 29.71
- Price target
- $635.20
Then the same goes for Meta Platforms stock, where analysts from UBS Group also maintained their Buy rating on the stock with a target price of $719 as of October 2024 as well.
This view, which has not been changed since then from UBS, calls for an upside of up to 16% from today’s share price, which has already seen a one-year rise of 86.1%.
And now, a new development could help these names gain more market share: China-based platform TikTok, which has up to 1.5 billion monthly users. The US government returned to follow Possible platform banPointing out that it gives China access to private data and intelligence among the population.
Based on the nature of TikTok’s content, it would be safe to assume that these 1.5 billion monthly active users could make their way to the next best thing, which is YouTube “Shorts” and Instagram “Reels,” boosting revenue and reach for both Google and Meta.
These are safe ways to play in the social media space, but other areas of the market with higher rewards come from exchanging a bit more volatility.
High Growth Potential: Double-digit rise in emerging social media platforms
The surge in active users on Reddit and Spotify, coupled with emerging monetization opportunities, has prompted Wall Street analysts to issue upgrades and boost ratings for these platforms.
Spotify technology today
Spotify technology
(As of 12/12/2024 ET)
- 52 week range
- $185.37
▼
$506.47
- P/E ratio
- 130.47
- Price target
- $429.96
Even after a massive 138.1% rise over the past 12 months, Spotify stock is poised to stage another double-digit rally in the coming quarters.
At least that’s the expectation of those at Canaccord Genuity Group, who reiterated a Buy rating as of December 2024 along with a $560 stock price target.
This new boost would call for an upside of up to 19% from where Spotify shares are trading today, a view that will likely maintain the upside as the company delivers more quarterly expansions in user counts and monetization methods.
I replied today
(As of 12/12/2024 ET)
- 52 week range
- $37.35
▼
$180.74
- Price target
- $124.42
When it comes to Reddit, institutional investors in FMC LLC decided to boost their positions by 302.8% as of November 2024, bringing their net holdings to a high of $801.4 million today, or a 6.9% ownership in the company. One reason to buy may be the upside called by analysts at Wells Fargo.
As of December 2024, their latest view is an Overweight rating on the stock, this time calling for a price target on the stock of $206 by name. This position and outlook for the company would mean a net upside of 27.5% from where it is today, even after an impressive 161.2% rise over the past 12 months.
Before you consider Spotify technology, you’ll want to hear this.
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