Image Source: PixabayAn abundance of tech companies are showing signs of increased profitability amid easing inflation and investors might be wondering if social media operators will continue to benefit as well.Meta Platforms (META) certainly come to mind and Pinterest (PINS) and Snapchat formally known as Snap (SNAP) are worthy of this conversation as well. Let’s see if now is a good time to buy these social media stocks going into 2024.Recent Performance OverviewRenowned for one of the world’s most popular social media platforms in Facebook, Meta Platform’s stock has spiked +195% in 2023 to help yield the strong performance of the Nasdaq this year.Providing a visual recommendation platform where users can interact based on their tastes and interests, Pinterest’s stock has climbed +53% YTD with Snap shares soaring +87% as a mobile camera application that allows people to communicate through short videos and images called Snaps.
Image Source: Zacks Investment ResearchGrowth TrajectoriesSocial media platforms collect most of their revenue from advertising and ad spending has continued to bounce back upon easing inflation. No one has benefited more from the resurgence in ad spending than Meta Platforms, with the trend of earnings estimate revisions for both fiscal 2023 and FY24 rebounding and rising sharply over the last year.
Image Source: Zacks Investment Research
Image Source: Zacks Investment ResearchRising EPS estimates have continued to propel Meta Platforms stock with annual earnings now projected to soar 45% this year and climb another 23% in FY24 to $17.57 per share.
Image Source: Zacks Investment ResearchThe growth and recovery of Pinterest and Snap’s bottom line continues to be compelling as well. To that point, Pinterest’s annual earnings are forecasted to more than double in FY23 at $1.07 per share versus $0.62 a share last year. Fiscal 2024 EPS is expected to expand another 20% to $1.29 per share. More importantly, over the last 60 days, FY23 and FY24 EPS estimates have risen 10% and 11% respectively.
Image Source: Zacks Investment ResearchAs for Snap, earnings are anticipated at $0.06 a share in FY23 compared to $0.17 a share last year but FY24 EPS is forecasted to rebound and soar 126% to $0.13 a share. Plus, FY23 and FY24 EPS estimates are slightly up over the last 30 days.It’s also noteworthy that like Meta Platforms and Pinterest, Snap is expecting double-digit top-line growth next year as well with sales forecasted to be up 13% in FY24 to $5.24 billion. 
Image Source: Zacks Investment ResearchBottom Line At the moment, Meta Platforms, Pinterest, and Snap’s stock all land a Zacks Rank #2 (Buy). Notably, each of these social media stocks has an “A” Zacks Style Scores grade for Growth as they continue to look like strong investments going into 2024.More By This Author:4 Top-Ranked ETFs Under $20 Up For Gains In 20244 High Earnings Yield Value Stocks To Buy Heading Into 20243 Reasons Why Amphastar Is a Great Growth Stock
