There are 4.95 billion people around the globe who use social media, accounting for the majority of internet users and more than half of the world’s population, which is why the best social media stocks warrant attention.
In particular, social media is a boon for advertising, a market estimated to be worth around $1 trillion globally in 2024. For example, Instagram and TikTok are improving features that let users shop inside the apps. This is a big change because about one-third of shoppers find new goods on social media.
Generative AI is also in use more and more to make material for social media. TikTok, for example, gives people tools like Creative Assistant to help them make interesting videos.
With all of these developments in mind, let’s look at three of the best social media stocks with “buy” ratings with potentially double digit upside.
One tech company is changing social interactions using AI across several platforms, including a new social app that may compete with texting services. Boosting search and digital interaction, the second name among the best social media stocks is diversifying into social media, complimenting its international ambitions. Finally, a digital giant is pioneering new advertising structures and AI-powered content strategies.
Meta Platforms (META)
Meta Platforms (NASDAQ:META) is a social media conglomerate constantly on the move. It recently improved AI technology with Meta AI, which is driven by Llama 3.
Meta AI with Llama 3 will be faster, better, and more entertaining. Meta applications like Facebook, Instagram, WhatsApp, and Messenger now have this AI assistant. It can help you discover restaurants or schedule events across over a dozen countries, including Australia, Canada, and numerous African nations.
Meta released a new social media app called Threads in July 2023. It’s meant to be a possible alternative to Twitter. The application lets users share text updates and join public talks. It works closely with Instagram, which makes it easier for users to interact with each other.
Meta is also working to grow its community so that third-party developers can use its Meta Quest devices to make mixed-reality apps.
On the topic of mixed reality, Meta created new Ray-Ban-style smart glasses for mixed reality. These include WhatsApp and Messenger video calls and Meta AI capabilities that provide real-time information.
In addition, Meta, Thorn, and other industry partners are creating new guidelines for safe generative AI technology production and usage.
Finally, Meta is also allowing other hardware firms to alter its Meta Quest devices’ operating systems to increase virtual reality adoption.
Microsoft (MSFT)
Like many of its tech compatriots, Microsoft (NASDAQ:MSFT) does not directly deal with social media. However, it’s quietly carving a niche in the area, complementing already established offerings; no wonder analysts project a 19% upside.
Microsoft’s Bing and Edge applications provide additional visual and collaborative capabilities. These upgrades simplify social networking and digital content sharing by making Bing operate better on Windows desktops and Microsoft Edge simpler to use.
Microsoft also urges Twitter users to follow Microsoft 365 hashtags for updates and support. This initiative simplifies user interaction with Microsoft’s content.
Microsoft has applied for a patent for a system that tailors social media warnings to user activity. Sending notifications to consumers will help content authors get attention and interact with audiences.
On the AI front, Microsoft Bing and Edge, driven by AI, are now simpler to use after being moved from Limited Preview to Open Preview. This eliminates waiting so more people may utilize its superior search features. These include visualization and multitasking.
Finally, Azure also uses cutting-edge AI because Microsoft is working more and more with NVIDIA. NVIDIA Grace Blackwell GB200 and Quantum-X800 InfiniBand networking will improve Microsoft’s cloud’s AI capabilities.
Alphabet (GOOGL)
Alphabet (NASDAQ:GOOGL,NASDAQ:GOOG), Amazon, and Meta are using AI to enhance advertising efficiency and produce new business concepts.
At Google Cloud Next 2024, the tech giant promised to use AI to change businesses for the better and said that its best AI models, like Gemini 1.5 Pro, are now more cheap.
Additonally, the new Gemini 1.5 AI model can also look at 1 million tokens and improve long-term knowledge.
Alphabet’s European Google.org Social Innovation Fund on AI supports social innovation. This initiative funds, coaches, and assists social entrepreneurs, mainly from underprivileged backgrounds, in developing AI solutions for social and environmental concerns.
Alphabet is not directly related to social media. YouTube, with 2.49 billion monthly active users, is likely its most social media-connected site. Alphabet formerly owned Google+, a social network that was shut down in 2019, but its recent revenue growth of 15%, the fastest since early 2022, showcases its diversified business model, which is why it’s one of the best social media stocks. A first-ever dividend is icing on the cake.
On the date of publication, Faizan Farooque 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.