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Good day subscribers thank you so much for joining me today i am jeremy and this is a financial education channel in today we’re talking about what are some of the best social media stocks you could actually you could put your money toward and today i’m gonna pick one i’m gonna pick one stock we’re gonna look at four different stocks there’s really only four social
Media type stocks you came in investing guys there’s the first one is facebook which they own obviously the facebook brand they own instagram which is huge for them now it’s their biggest growth engine and they also own whatsapp which is kind of like a phone calling texting service but it’s kind of morphing into more of a social network type deal then you have twitter
We’re gonna look at twitter we’re also gonna look at google which you might not think of google as a social media company which for the most part they aren’t except for what you’re watching this on youtube it’s one of the biggest social media platforms out there guys and a lot of people like to put youtube as like a media company like a competitor to television
In netflix and things like that and it is it is a competitor to them but it’s mainly i think the thing that makes youtube special is the social community of being able to comment on a video being able to like a video dislike a video being able to have a conversation with somebody in the comments section or the creator themselves i think that’s what makes youtube
So special and differs it from every other platform out there guys and then the last talk we’re going to look at today you can’t even quite buy yet as of the making in this video but you will be able to very soon which is snapchat now we’re only going to go into a little bit into all these companies because otherwise would be like a three-hour video but by the
Way i have a full snapchat video looking in-depth and fat snapchat coming in a few days guys so look out for that so let’s go ahead and give you this guys let’s see which social media stock is the best of them all hit a thumbs up if you enjoy so first one’s facebook so look at the way facebook’s revenue has grown over the last few years they were doing 12 billion
Dollars in revenue 2014 which was phenomenal that’s amazing last year they did 27 point six billion dollars in revenue guys they did almost 10 billion dollars more year-over-year from 2015 and 2016 that is absolutely phenomenal and look at how much of it went straight down to gross profit yeah i mean out of 27 billion dollars in revenue on 2016 the 23 billion went
Straight to the bottom line or not to the bottom line but to the gross profit line guys that’s amazing and then if we go down and we look at net income coming from three point six billion dollars in 2015 to last year they did over 10 billion dollars in net income guys facebook’s is amazing it is amazing the growth they’re having straight to the bottom line because
The great thing for facebook right now is they they’re already built their company like everything that is needed to be built for facebook is built as far as the amount of employees they don’t need to expend a ton of money on anything anymore you just need to keep spending the amount they’re spending right but they’re growing revenue at such a fast rate that that
Revenue is now going straight to the bottom line guys so it is absolutely amazing what facebook is doing here guys in the fact that basically all new money that’s coming in it’s going straight to that bottom line right now guys so absolutely amazing now a few things here on facebook those look at some of these statistics so they got a trailing p/e of around 38 but
They got a forward p/e of only 20 which is very low for a company that’s had that has this kind of growth guys a forward p/e of 20s very low then we look at this balance sheet they’ve got one of the best balance sheets of any stock in the stock market they have almost nine billion dollars in cash over twenty billion dollars and short-term investments they have no
Long-term investments but they also have two hundred eighty million dollars in short slash current long-term debt which is like pathetic amount yeah that’s like nothing and they have no long-term debt she’s one of the best balance sheets you’ll find of any stock out there guys it’s arguably the best but i would say it’s one of the best because we might actually
See a stock today that has a best balance sheet of them all so absolutely amazing numbers out of facebook unbelievable that’s all i’ma say it’s just unbelievable facebook so the second stock we’re looking at was just the one i’m gonna preface to you for you guys now it’s the one i like the least out of them i don’t like it at all matter of fact it’s twitter but we
Got a look at it anyway so they’ve grown revenue very nice you know from 2013 six hundred six hundred million dollars in revenue then they did 2014 they did one point four billion dollars in revenue 2015 they did 2.2 billion dollars in revenue very good numbers but the bottom line is just is just horrible you know they’re losing over half half a billion dollars
In money guys it’s amazing and also their growth has slowed significantly recently so there are a couple bad signs there you look at their obviously they’re unprofitable now they expect to be profitable this coming year so that that would assume to put their pe yet maybe a 40 but are they really gonna make a profit i’m not sure i’m sure about that and if they do
A 440 p/e is pretty high for a company that’s growth is slowing significantly and then we look at their balance sheet it’s a decent balance sheet they have 900 million dollars in cash they had 2.5 billion dollars in short-term investments they have no long-term investments but they do have 1.5 billion dollars in debt so when i look at twitter i see a good balance
Sheet not a great balance sheet by any stretch of the imagination i see a company has growth is slowing a lot i see a company that’s lost oh well over a billion dollars the last few years and i’m like is that a stock i really want to be in it for me personally no not at all so there it’s the works of a bunch in my opinion guys next one up is google now google gives
A lot of money from a lot of things that social media related but needless to say they have a big social media network in youtube so google has grown like a beast i mean 66 billion dollars in 2014 last year they did 90 billion dollars so they’re absolutely growing i am on stris lee now net income has not grown as fast you look at net income sixteen point three
Billion dollars in 2015 where’s this past year they did just under twenty billion dollars in net income so google is spending a lot of money on a lot of things that people are not sure if they’re gonna actually pan out or what not a lot of what they call moon shots you know trying to reach for the sky take things that maybe those won’t even pay off so but the bottom
Line is if they cut back on a lot of that stuff that bottom line would go up drastically guys it would so a few other things to look at here at google they have a trailing p/e of 30 they have a forward p/e of 21 so that’s a little bit higher actually than facebook’s forward p you know for facebook now here’s what i’m talking about with youtube youtube may be worth
Over 90 billion dollars if it was a standalone company it could be worth up to a hundred billion dollars guys you know and this is a service they paid 1.65 billion dollars for back end i believe it was 2006 they’re saying that there’s probably drink generating on youtube well over 12 billion dollars in revenues i see no reason why that wouldn’t be true i wouldn’t
Be surprised if this upcoming year they do something around 20 billion dollars in revenue on youtube i mean completely honest guys so youtube is an absolute growth piece for google it’s one of their fastest growing markets and they have a lot of different things with google i really like google a lot because not just because of youtube that’s the one of the main
Components but because they have the google search engine which maybe is not growing as fast as and as far as new people using it but it’s still a profit machine for them they have the they have their new phone the pixel phone come out the google has a lot of things it’s a stock i really like guys now also look at this balance sheet they have arguably the best
Balance sheet if any public company guys or thirteen billion dollars in cash seventy three billion dollars in short term investments over almost six billion dollars in long-term investments they have no shorts left current long-term debt and they have about just under four billion dollars in long-term debt that is a ridiculously amazing balance sheet there guys
For google so i love the balance sheet at google i love the way they are raising that top line i would like you to probably cut back on some of that spending they’re doing because some of those things i don’t think will pan out and that could go straight to the bottom line so i like the profitability to have like the youtube you know whole deal i love youtube in
General as a consumer i know many people who do i’m a creator on youtube i think it’s just a phenomenal growth platform for google so google i like a lot but is it better than facebook you’ll see now this last one is snapchat so this is not even a public company yet i think it’s interesting that snapchat calls themselves a camera company who and actually my biggest
Investment go pro right now they try to be known as not a camera company want to be known as i don’t know whatever they is term they try to use for the company now but it’s a camera company so no a snapchat here look at the way they raised revenues they did 58 million dollars in revenue in 2015 right last year 2016 they did four hundred and four million dollars
In revenue and it’s expected that they’ll probably do around a billion dollars for this past year in revenues for the 2017 years so there are growth of beast right now though they are losing a lot of money you guys look at that net loss they lost 372 million dollars in 2015 this past year they lost over a half a billion dollars guys so they’re losing a phenomenal
Amount of money they have cash and cash equivalents of around a billion dollars right now and though that number will go up drastically once they actually go public because all that money will move straight to that that cash line there guys so that’s going to go up great now they’re asking for a valuation of around 20 billion dollars guys so basically you’re getting
A company and we’re gonna look into snapchat foley guys i’m a video that i have coming in a few days from now you know we’ll look at this fully but they have a valuation and they want a valuation about 20 billion dollars but they are losing about a half billion dollars a year currently now that could change fast the way it did with you know facebook and whatnot so
The question was snapchat is is is snapchat the next twitter you know a growing like crazy and then just the growth you know slows big time and they start losing users and the users start not growing anymore or are they in the next facebook and and just turn into an absolute growth beast guys so we’ll look at snapchat for the purposes of this video snapshots not my
Favorite it’s between facebook and google and right now as far as social media stocks i have to go with facebook as much as i love google and much as google has so many things going for it other than social media when you look at facebook at a four p of around 20 and the fact that almost every $1 that’s coming through the door is now just going straight to that
Bottom line guys this is now a profit beast and facebook and they have several growth levers to attack they have the facebook brand they have in the graham brand which they just started advertising on within the past couple of years then they had the whatsapp brand which has over a billion users facebook has so much going for it guys in a phenomenal balance sheet
At that so i look at this and i say facebook one i say google number two as far as social media stocks say he’s probably snapchat number three and like i said we’re gonna foley in a snapchat soon and then last is twitter twitter i’m just a stock i’m not really an eye strapped twitter but i’m not interested at all in the company unless i somehow see a turnaround in
The company and i don’t really necessarily see a turnaround the attempts to guys so that covers of social media stocks today let me know what favorite what your favorite is as far as social media stocks guys i would love to hear from you if you just came across this channel you’ve not subscribed yet you may want and we talk personal finance in the channel we talk
Entrepreneurship i’m an actual business owner iowa ton of my business tips we talk to stock market the most of anything guys thank you for watching and have a great day
Transcribed from video
Best Social Media Stocks in the Stock Market! By Financial Education
