Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Pinterest (NYSE:PINS) and its peers.\n\nBusinesses must meet their customers where they are, which over the past decade has come to mean on social networks. In 2020, users spent over 2.5 hours a day on social networks, a figure that has increased every year since measurement began. As a result, businesses continue to shift their advertising and marketing dollars online.\n\nThe 6 social networking stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 2.4% while next quarter’s revenue guidance was 1.2% below.\n\nLuckily, social networking stocks have performed well with share prices up 21.1% on average since the latest earnings results.\n\n\nSlowest Q1: Pinterest (NYSE:PINS)\n\nCreated with the idea of virtually replacing paper catalogues, Pinterest (NYSE: PINS) is an online image and social discovery platform.\n\nPinterest reported revenues of $855 million, up 15.5% year on year. This print exceeded analysts’ expectations by 1%. Despite the top-line beat, it was still a mixed quarter for the company with a solid beat of analysts’ EBITDA estimates but revenue guidance for next quarter slightly missing analysts’ expectations.\n\nPinterest Total Revenue\n\nPinterest delivered the weakest performance against analyst estimates of the whole group. The company reported 570 million monthly active users, up 10% year on year. Interestingly, the stock is up 36.8% since reporting and currently trades at $38.14.\n\nIs now the time to buy Pinterest? Access our full analysis of the earnings results here, it’s free.\n\n\nBest Q1: Nextdoor (NYSE:KIND)\n\nHelping residents figure out what's happening on their block in real time, Nextdoor (NYSE:KIND) is a social network that connects neighbors with each other and with local businesses.\n\nNextdoor reported revenues of $54.18 million, up 1.9% year on year, outperforming analysts’ expectations by 1.8%. The business had a very strong quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ number of weekly active users estimates.\n\nNextdoor Total Revenue\n\nThe market seems happy with the results as the stock is up 25.2% since reporting. It currently trades at $1.89.\n\nIs now the time to buy Nextdoor? Access our full analysis of the earnings results here, it’s free.\n\n\nMeta (NASDAQ:META)\n\nFamously founded by Mark Zuckerberg in his Harvard dorm, Meta Platforms (NASDAQ:META) operates a collection of the largest social networks in the world - Facebook, Instagram, WhatsApp, and Messenger, along with its metaverse focused Reality Labs.\n\nMeta reported revenues of $42.31 billion, up 16.1% year on year, exceeding analysts’ expectations by 2.3%. Still, it was a mixed quarter as it posted revenue guidance for next quarter missing analysts’ expectations significantly.\n\nInterestingly, the stock is up 30.6% since the results and currently trades at $714.88.\n\nRead our full analysis of Meta’s results here.\n\n\nReddit (NYSE:RDDT)\n\nFounded in 2005 by two University of Virginia roommates, Reddit (NYSE:RDDT) facilitates user-generated content across niche communities (called subreddits) that discuss anything from stocks to dating and memes.\n\nReddit reported revenues of $392.4 million, up 61.5% year on year. This result beat analysts’ expectations by 6.2%. Overall, it was a strong quarter as it also put up EBITDA guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.\n\nReddit pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The company reported 50.1 million daily active users, up 20.7% year on year. The stock is up 24.2% since reporting and currently trades at $147.39.\n\nRead our full, actionable report on Reddit here, it’s free.\n\n\nSnap (NYSE:SNAP)\n\nFounded by Stanford University students Evan Spiegel, Reggie Brown, and Bobby Murphy, and originally called Picaboo, Snapchat (NYSE: SNAP) is an image centric social media network.\n\nSnap reported revenues of $1.36 billion, up 14.1% year on year. This print surpassed analysts’ expectations by 1.3%. It was a strong quarter as it also produced an impressive beat of analysts’ EBITDA estimates and solid growth in its users.\n\nThe company reported 460 million daily active users, up 9% year on year. The stock is up 11.1% since reporting and currently trades at $10.11.\n\nRead our full, actionable report on Snap here, it’s free.\n\n\nMarket Update\n\nIn response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.\n\nWant to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Q1 Earnings Roundup: Pinterest (NYSE:PINS) And The Rest Of The Social Networking Segment

The article analyzes Q1 earnings results for major social networking companies, including Pinterest, Nextdoor, Meta, Reddit, and Snap. These companies reported strong revenue growth, exceeded analyst estimates, and saw stock price increases. The market reacted positively to the results, with some companies outperforming peers in revenue growth and EBITDA performance.