Media

Will Social Media Stocks See the Quickest Recovery From the Coronavirus?

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The stay-at-home economy may be the biggest winner from the coronavirus pandemic. As more people are practicing social distancing, and some even quarantining, these stocks have responded in kind. Social media may not necessarily be part of this economy, but if people are checking Facebook, Twitter and Instagram at work, you can be sure they’re doing this at home much more.

One thing that social media companies are dealing with in the midst of this COVID-19 outbreak is fighting misinformation. False information and reckless recommendations have the potential to spread the virus and fear far and wide, so curtailing these attempts to mislead has the potential to save lives.

The current battle against misinformation on most social media platforms is primarily concentrated on so-called bad actors that deliberately spread lies and misleading information, sometimes for political gain.

Platforms like Twitter and Facebook were also among the earliest sources of accurate COVID-19 information. Since average citizens, celebrities, politicians and others use social platforms to share their coronavirus experiences, air grievances and simply kill time while self-isolating, important health and safety information easily gets drowned out.

It is safe to say the markets are in bear territory now, and some are suggesting this will be a recession. Some of the big bears are even calling this the beginning of a depression. However, some companies may have a quicker route out of this than others. Companies that primarily operate online or have small supply chains may have the best chances at this, and social media companies are at the heart of that. 24/7 Wall St. has included some social media companies that are on the frontline of the information war and how their shares are responding to the novel coronavirus outbreak.

Facebook Inc. (NASDAQ: FB) shares are down 28% year to date and down 32.5% in the past month alone. On Thursday, Facebook stock traded up about 7% at $157.86, in a 52-week range of $137.10 to $224.20. The consensus price target is $244.28.

Twitter Inc. (NYSE: TWTR) shares are down 31% year to date and down 42% since February 19. Twitter stock traded up over 7% to $23.69 on Thursday. It has a 52-week range of $20.00 to $45.86, and the consensus price target is $35.81.

Snap Inc. (NYSE: SNAP) shares are down 49% year to date, and the stock is down 51% within the past month. It was last seen up 7% at $8.99, with a 52-week range of $7.89 to $19.75. The consensus price target is $19.91.

Pinterest Inc. (NYSE: PINS) shares are down 41% year to date, but the stock is 52% lower since mid-February. Pinterest stock was up on Thursday over 13% to $12.41, in a 52-week range of $10.10 to $36.83. The consensus analyst target is $28.19.

Match Group Inc. (NASDAQ: MTCH) shares are down 37% year to date. In the past month alone, Match stock is down 32%. On Thursday, it was down about 1% at $51.33, in a 52-week range of $47.27 to $95.32. The consensus price target is $88.06.


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