When you own a small business or a startup, income is always a priority. Your potential sources of income may not be as plentiful as enterprises, but you still have options: sales, profits or venture capital money.
Wherever you get your income, it doesn’t hurt to get a bit more creative with your streams of revenue. Another place you can earn more income is via stocks, specifically social media stocks.
The Potential for Earnings
It’s no secret that social media is a fast-growing industry. As of July 2021, there are 4.8 billion active social media users. There has also been plenty of movement in terms of valuation for the major social media platforms over the past few months. Facebook has risen to all-time highs while Snaphchat filed for a $3 billion IPO. And these numbers are expected to grow as more people use social media.
So if you are interested in tinkering around with Facebook, Twitter or Instagram stocks, here’s what you need to know.
Instagram is a powerful social media platform that attracts a huge number of users, thanks to its homegrown influencers. The social network is known for hosting influencers who post aesthetic photos via revenue-generating ads. People also love Instagram to post photos of themselves and their memories.
Instagram’s stock prices fluctuate now and then but it never fails to help you make an investment. Currently, the social network’s price stands at $300.00. But here’s the thing about buying Instagram stocks, you can’t invest directly in Instagram. But you can buy Facebook shares since Facebook owns Instagram (we’ll talk more about that later).
Facebook boasts of an amazing financial run. Since the company’s IPO, Facebook has been consistently growing in user number and revenue — both important metrics for investors. They also reign supreme in terms of time spent on the platform, with its users spending nearly an hour on the social network. As a result, the company enjoys a net worth of $434 billion.
So, if you’re interested in buying Instagram stocks and other companies under Facebook, buy FB shares. Currently, Facebook’s stock price sits at $325.00. Use your Facebook connections or do more research to determine if this platform is the best for your investments.
Founded in 2009, WhatsApp is known as the best alternative to expensive SMS services. The app enables users to upload their contacts and message anyone with WhatsApp at no cost. Facebook purchased WhatsApp in February 2014 and currently, it is one of the best purchases Facebook ever made.
The potential revenue for WhatsApp is estimated at $5 billion. Per user, the average revenue sits at $4 last 2020. Since it is under Facebook, the cost of WhatsApp stocks sits at a share price $300.00.
The visual sharing and discovery company won many hearts, especially during the pandemic. Millions of people stuck at home visited Pinterest. With about 500 million users and counting, Pinterest has become the top site internationally for creators and merchants to advertise their products via creative photos and videos.
Pinterest has a net worth of $2 billion in net cash, which makes it a strong force in the social media space. As of now, Pinterest’s stocks are worth $51.57.
Etsy is a popular e-commerce platform known for its unique approach to online sales. Apart from specializing in handmade and vintage goods, Etsy is also good at connecting shoppers and creators directly. With more than 90 million active buyers and five million sellers, Etsy is a growing platform that is worth your attention.
The company has grown in part by acquisitions. It owns the reseller and vintage music equipment website Reverb. Recently it also purchased Depop, which sells secondhand luxury apparel to millions of users worldwide.
How to Buy Social Media Stocks
- Compare share trading platforms. Start by finding a trading platform that offers access to international stock markets. If you are a newbie to the industry, look for a platform with low brokerage and foreign exchange fees.
- Open your brokerage account. Complete your application by adding your personal and financial details, including your ID. Don’t forget to fund your account with a debit card, credit card or bank transfer.
- Search for the social media platform you want to invest in. Find the social media share by ticker symbol or name. Learn more about its history to determine if it’s a solid investment.
- Purchase today or later. You can buy today with a market order. If you want to delay your purchase, use a limit order until your chosen social media platform reaches its desired price.
- Decide how many to buy. Weigh your budget against your potential portfolio to minimize your risk with the stock market’s ups and downs.
It doesn’t hurt to make investments online as you watch your new business thrive. To learn more about social media stocks, talk to your local stockbroker.