Investing in Social Media Stocks

Social media isn't new anymore, but it is still a fast-growing industry.

There are currently around 5.24 billion active social media users worldwide, which is 63.9% of the world's population and more than double the active social media user count a decade ago.

The biggest social networks still make most of their money from advertising, but social media is maturing and generating revenue from sources such as e-commerce, digital payments, and video games.

Investing in social media has more than doubled shareholder dollars in recent years, as measured by the performance of the exchange-traded fund (ETF) Global X Social Media ETF (SOCL -2.27%). Returns have been driven by top names such as Meta Platforms’ Facebook (META -3.54%), Snap (SNAP -1.78%), and Alphabet’s Google (GOOG -1.92%) (GOOGL -1.85%), which also owns YouTube.

Aside from the major players, plenty of other emerging social platforms are worth your attention. With hundreds of millions of regular internet users, now is a great time to consider investing in social media companies.

Best social media stocks in 2025

Best social media stocks in 2025

These are some of the leading social media stocks to own in 2025 and beyond:

1. Match Group

1. Match Group

Match Group is best known for its dating sites Tinder (the top downloaded dating app worldwide), OkCupid, and Hinge. Finding companionship via the web has steadily become normalized over time.

Compared to other large social media businesses, Match has a unique business model. It derives most of its revenue from subscriptions paid directly by users rather than advertising.

In fiscal 2024, Match Group reported financials that reflected some pressure from the continued strength of the U.S. dollar as it pairs up against foreign exchange headwinds. Nonetheless, total revenue of $3.5 billion grew 3% year over year, about 6% on a foreign exchange neutral basis.

Those figures were driven by an 8% year-over-year increase in revenue per payer despite a 5% year-over-year decline in total payers on Match Group's platforms. Operating cash flow and free cash flow were $933 million and $882 million, respectively, for 2024.

2. Etsy

2. Etsy

Etsy is best known as an e-commerce platform, but it stands out for its unique approach to facilitating online sales. Not only does the company specialize in vintage and handmade goods, but Etsy is also an online discovery platform where shoppers directly connect with creators.

Etsy is currently struggling due to a combination of factors that have emerged in recent years. These include a normalization of consumer spending behaviors, increased competition from other marketplaces, and a shift in consumer spending towards necessities over discretionary items.

There's also been a perception among some consumers that the platform is no longer broadly focused on handmade or otherwise original goods. Still, Etsy boasts about 8.5 million active sellers and just shy of 97 million active buyers on its flagship marketplace.

In the first nine months of 2024, Etsy reported gross merchandise sales of $8.9 billion and revenue of around $2 billion. Those two figures represented a decrease of 3.3% and an increase from 2.6% from the previous year. Etsy's net income was down year over year but still totaled $173.4 million.

3. Pinterest

3. Pinterest

The visual sharing, search, and discovery company was a huge winner when millions around the globe flocked to Pinterest while confined to their homes. Many are choosing to continue using the platform as it ushers in its next era of growth. With more than 553 million monthly users, it has become a top site worldwide for merchants and creators to advertise their products via a unique picture- and video-based format.

The company is spending strategically to continue increasing its user base and ways for businesses to build their brand on Pinterest. It is generating net income and positive free cash flow, so Pinterest is in increasingly good shape.

Revenue in 2024 was $3.6 billion, up 19% from 2023. Global monthly active users increased 11% year over year, while net income totaled $1.9 billion for 2024. Pinterest also reported free cash flow of $940 million for 2024.

4. IAC

4. IAC

IAC is hardly a household name, but the holding company has fostered and sold several well-known social media and online interactive platforms. Among them are Match Group, the travel and tourism conglomerate Expedia Group (EXPE 0.74%), and the online video and streaming site Vimeo (VMEO -0.53%).

While IAC has a proven track record of investing in and expanding businesses in the social realm of the internet, its current focus is not strictly social media. Among IAC's main focal points is its majority stake in home project company ANGI Homeservices (ANGI -5.73%).

It is also engaged with many other companies, including Dotdash. This conglomerate includes Investopedia, Simply Recipes, and other websites. In 2021, Dotdash acquired Meredith Corporation for $2.7 billion. Meredith Corporation formerly owned many magazines, including People, Better Homes and Gardens, Real Simple, and InStyle. Dotdash Meredith is now the largest digital and print publisher in the United States.

In January 2025, IAC announced a plan to spin off its stake in Angi, a home services company, to its shareholders. The spinoff was expected to take place in the first half of 2025.

5. Bumble

5. Bumble

Bumble (and its subsidiary Badoo) was founded by a former executive at Match Group's Tinder, and it has emerged as one of the fastest-growing dating apps. The company's initial public offering (IPO) in early 2021 raised $2.5 billion in cash, and it stands out for being one of just a few female-founded and -led companies. Bumble has tried to take a fresh approach to social networking and online dating.

Bumble and Badoo's basic features are free to use, and the company primarily makes its money from one-time, in-app purchases and premium subscriptions. In just over a decade (Bumble was founded in 2014), the dating and relationship service has accumulated millions of users worldwide.

Bumble has struggled the last few years. A saturated dating app market, a decline in overall online dating enthusiasm, and struggles to effectively monetize its user base through premium features have been some issues at play. The company has also gone through some leadership changes.

CEO Lidiane Jones, who was formerly the CEO of Slack, resigned in January 2025. Jones was CEO for just one year, having taken the helm after Whitney Wolfe Herd's departure. Whitney Wolfe Herd, the founder of Bumble, was expected to return as CEO in mid-March 2025.

In the third quarter of 2024, Bumble's total revenue declined by 1% to $274 million, and Bumble app revenue decreased by 1% to $220 million. However, Bumble paying app users jumped 10% year over year to 2.9 million, which is an increase of 52,000 sequentially.

Related investing topics

Should you invest?

Should you buy social media stocks?

The social media business model is still evolving and changing. With roots in advertising-based revenue, social media companies are finding new ways to connect people all over the world while more effectively monetizing their expansive networks. Investors in social media stocks should be comfortable with buying and holding while the social media industry reaches maturity.