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Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. * Log In * Help * Join The Motley Fool Top 10 Stocks to Buy Now Free Article You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More SHOULD YOU FORGET TRUMP MEDIA AND BUY THESE 2 TECH STOCKS INSTEAD? By Leo Sun – Nov 20, 2024 at 4:37AM Key Points * Trump Media is still an overvalued meme stock that is running on fumes. * Meta offers a more balanced way to profit from the social media market's growth. * Pinterest has carved out a defensible, high-growth niche in Meta's shadow. * Buy Alert: Our 10 best stocks to buy right now (see the list) NASDAQ: DJT TRUMP MEDIA & TECHNOLOGY GROUP Market Cap $6B Today's Change Arrow-Thin-Down (0.60%) $0.18 Current Price $30.05 Price as of November 20, 2024, 3:27 p.m. ET Meta and Pinterest are much more reliable social media plays. Trump Media & Technology Group (DJT 0.60%), the parent company of Truth Social, has taken investors on a wild ride since it went public by merging with a special purpose acquisition company (SPAC) on March 26, 2024. Its stock opened at $70.90, sank to an all-time low of $12.15 on Sept. 23, and now trades at about $33. In 2023, Trump Media generated just $4.1 million in revenue while racking up a net loss of $58.2 million. In the first nine months of 2024, it only generated $2.6 million in revenue as its net loss widened to a whopping $363 million. With an enterprise value of $5.44 billion, its stock trades at 1,322 times last year's revenue -- so it's a meme stock that is mainly being propped up by the news cycle as it relates to President-elect Donald Trump instead of operating a sustainable business model. Image source: Getty Images. Unlike other social media companies, Trump Media doesn't disclose its number of active users, ad impressions, or average revenue per user. So there are very few financial metrics available to analyze the health of the business. It's getting ready to launch its own streaming video platform, but that's a notoriously expensive market to break into. So instead of chasing Trump Media's wild short-term swings and hoping it somehow scales up its business, investors with a long-term mindset should simply buy two more reliable social media stocks instead: Meta Platforms (META 0.22%) and Pinterest (PINS -1.68%). THE SOCIAL MEDIA LEADER: META PLATFORMS Meta is the world's largest social media company. It served 3.29 billion daily active people across its entire family of apps (Facebook, Instagram, Messenger, and WhatsApp) in its latest quarter. That represented 5% user growth from a year earlier. In 2023, Meta's revenue and earnings per share (EPS) grew 16% and 73%, respectively. In 2024, analysts expect its revenue to rise 21% and 52%, respectively. Arrows-In Collapse NASDAQ: META Meta Platforms Today's Change (0.22%) $1.22 Current Price $562.31 Arrow-Thin-Down YTD1w1m3m6m1y 5y +181.69% Price VS S&P META KEY DATA POINTS Market Cap $1,416B Day's Range $554.20 - $566.35 52wk Range $313.66 - $602.95 Volume 6,244,878 Avg Vol 11,886,417 Gross Margin 81.50% Dividend Yield 0.27% That acceleration was mainly driven by a warmer macroeconomic environment, the expansion of its Reels short video platform, and more ad spending from Chinese e-commerce and gaming companies. The robust growth of its high-margin advertising business, which accounted for 98% of its revenue last year, offset the persistent losses at its Reality Labs division which produces its virtual reality (VR) and augmented reality (AR) products. Meta has been ramping up its near-term spending on its cloud infrastructure, artificial intelligence (AI), and Reality Labs segments, but it still generated enough cash to buy back $30.1 billion in shares and pay out $3.8 billion in dividends in the first nine months of 2024. ARE YOU MISSING THE MORNING SCOOP? Start your day ahead of the game with the market’s top stories and key investing insights. Breakfast News delivers it all in a quick, Foolish, and free daily newsletter that lands in your inbox every market morning.. Enter Email Address: By submitting your email address, you consent to us keeping you informed about updates to our website and about other products and services that we think might interest you. Please read our Privacy Statement and Terms & Conditions. Analysts expect Meta's revenue and earnings to grow another 15% and 12%, respectively, in 2025. Its stock still looks reasonably valued at 22 times forward earnings -- and it could still have plenty of room to grow as it locks in more users, rolls out new features, and attracts more advertisers. THE RESILIENT NICHE CHALLENGER: PINTEREST Pinterest carved out a niche in the social media market with its virtual pinboards for sharing ideas, interests, and hobbies. It experienced a major growth spurt during the pandemic as more people stayed at home and looked for online shopping ideas, recipes, DIY projects, and family oriented activities on its pinboards. However, its growth cooled off as the pandemic lockdown period passed and more people went outside again. Arrows-In Collapse NYSE: PINS Pinterest Today's Change (-1.68%) -$0.50 Current Price $29.19 Arrow-Thin-Down YTD1w1m3m6m1y 5y +56.68% Price VS S&P PINS KEY DATA POINTS Market Cap $20B Day's Range $28.93 - $29.88 52wk Range $27.00 - $45.19 Volume 3,571,174 Avg Vol 8,749,525 Gross Margin 78.93% Dividend Yield N/A Yet Pinterest is still growing. In 2023, its revenue rose 9%, its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) jumped 55%, and its total number of monthly active users (MAUs) grew 11% to 498 million. By the third quarter of 2024, its MAUs had swelled to 537 million -- which should silence the bears who had written it off as a pandemic-era fad stock that would run out of steam. For the full year, analysts expect its revenue and adjusted EBITDA to grow 19% and 43%, respectively. For 2025, they expect its revenue and adjusted EBITDA to rise 16% and 25%, respectively. It's also expected to turn profitable on a generally accepted accounting principles (GAAP) basis this year. Most of that growth should be driven by its growing popularity among Gen Z users (who now account for over 40% of its users), the integration of more short videos, new AI-driven recommendation tools, more e-commerce tools for its "shoppable" pins, and its international expansion. At 13 times next year's adjusted EBITDA, Pinterest's stock still looks dirt cheap relative to its growth potential. SHOULD YOU INVEST $1,000 IN TRUMP MEDIA & TECHNOLOGY GROUP RIGHT NOW? Before you buy stock in Trump Media & Technology Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Trump Media & Technology Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $900,893!* Now, it’s worth noting Stock Advisor’s total average return is 902% — a market-crushing outperformance compared to 173% for the S&P 500. Don’t miss out on the latest top 10 list. See the 10 stocks *Stock Advisor returns as of November 18, 2024 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Leo Sun has positions in Meta Platforms. The Motley Fool has positions in and recommends Meta Platforms and Pinterest. The Motley Fool has a disclosure policy. MOTLEY FOOL ISSUES A.I. BUY ALERT This tech could reach $80 trillion. Imagine a technology worth over 24 Nvidias. What in the world could be worth 24 Nvidias? The answer is a radical tech breakthrough that our experts think is transforming every walk of life. And this giant leap forward has many on Wall Street very excited. Learn more › Related Articles Why Trump Media Stock Plummeted This Week Is Trump Media Stock Heading Back to All-Time Highs? Should You Buy Trump Media Stock Based on a Trump Victory? Why Trump Media Stock Is Soaring Today Better Social Media Stock: Trump Media vs. Rumble 902% Start Your Mornings Smarter! Wake up to the latest market news, company insights, and a bit of Foolish fun—all wrapped up in one quick, easy-to-read email every market day. Enter Email Address: By submitting your email address, you consent to us keeping you informed about updates to our website and about other products and services that we think might interest you. Please read our Privacy Statement and Terms & Conditions PREMIUM INVESTING SERVICES Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. 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