Should I invest in social media ETFs or individual stocks?

Choosing between social media ETFs or individual stocks really depends on your risk tolerance, research ability, and goals. ETFs offer built-in diversification for broad sector exposure, while individual stocks can offer higher potential returns but require deeper research and carry more concentration risk.

How do social media companies make money?

Social media companies primarily make money through targeted advertising, which is selling ad space to businesses that pay to reach specific user demographics using collected user data for precision targeting. Beyond ads, they earn revenue via subscriptions, in-app purchases, commerce/shopping integrations, and data licensing.

Can social media stocks provide dividends?

Yes, some social media stocks like Meta now provide modest dividends, though many smaller or high-growth social media companies still focus on reinvesting profits instead of paying them out.

Are social media stocks suitable for long-term or short-term investors?

Quality social media stocks with robust fundamentals and durable growth tailwinds are ideal for long-term investors seeking to buy and hold for years. The long-term potential depends heavily on a company's ability to innovate and adapt to a maturing, dynamic market.

How can I diversify my portfolio with social media stocks?

Investing in a handful of social media stocks either through individual investments or an ETF can help you diversify your portfolio holdings into this sector of the stock market.

How do economic downturns impact social media stocks?

Social media stocks typically decline during economic downturns because companies quickly slash their advertising budgets, which are the primary source of revenue for these platforms. This drop in income, combined with lower consumer confidence and spending, often leads to missed revenue targets and increased stock price volatility. However, quality businesses can and do recover from these periods, and share prices tend to follow.

Best Social Media Stocks to Buy in 2026

By Rachel Warren – Updated Mar 22, 2026 at 12:22 AM EST | Fact-checked by Parker Hicks

Key Points

Match Group's strength lies in user-paid subscriptions, focusing on profitability despite a payer dip.
Etsy enhances user experience using AI, targeting revived growth amid competitive challenges.
Pinterest invests in user engagement and business advertising tools, maintaining a strong income flow.

Social media is no longer a new industry, but it is still a fast-growing one. The biggest platforms still earn most of their revenue from advertising, but the industry is maturing and expanding into e-commerce, digital payments, and video.

Here is what to know about investing in social media, along with our top stock picks.

Loading paragraph...

Person holding a smartphone with images of conversation bubbles seemingly floating above it. — Source: Getty Images.

Loading image...

Loading paragraph...

Ticker Information Table
Name and ticker	Market cap	Dividend yield	Industry
Match Group (NASDAQ:MTCH)	$8.0 billion	2.24%	Interactive Media and Services
Etsy (NYSE:ETSY)	$6.3 billion	0.00%	Multiline Retail
Pinterest (NYSE:PINS)	$12.0 billion	0.00%	Interactive Media and Services
Iac (NASDAQ:IAC)	$3.1 billion	0.00%	Interactive Media and Services
Bumble (NASDAQ:BMBL)	$370.4 million	0.00%	Interactive Media and Services
Meta Platforms (NASDAQ:META)	$1.5 trillion	0.35%	Interactive Media and Services
Snap (NYSE:SNAP)	$9.5 billion	0.00%	Interactive Media and Services

Data as of Jun 8, 2026. Showing 7 of 7 total entries.

Loading ticker_table...

Loading paragraph...

NASDAQ: MTCH

Match Group

Today's Change

(-0.98%) $-0.34

Current Price

$34.42

Key Data Points

Market Cap

$8.0B

Day's Range

$34.14 - $35.24

52wk Range

$28.81 - $39.20

Volume

2.3M

Avg Vol

4.8M

Gross Margin

70.36%

Dividend Yield

2.24%

Loading company_card...

Loading paragraph...

2. Etsy

Loading paragraph...

NYSE: ETSY

Etsy

Today's Change

(-0.19%) $-0.13

Current Price

$66.92

Key Data Points

Market Cap

$6.3B

Day's Range

$66.27 - $68.40

52wk Range

$44.00 - $76.52

Volume

136.3K

Avg Vol

Gross Margin

72.01%

Loading company_card...

Etsy (ETSY -0.19%) is best known as an e-commerce platform, but it stands out for its unique approach to facilitating online sales. Not only does the company specialize in vintage and handmade goods, but Etsy is also an online discovery platform where shoppers directly connect with creators.

Etsy is currently struggling due to a combination of factors. These include a normalization of consumer spending behaviors, increased competition from other marketplaces, and a shift in consumer spending towards necessities over discretionary items. There's also been a perception among some consumers that the platform is no longer broadly focused on handmade or otherwise original goods.

Etsy is focused on investments in enhancing the app experience, personalization, and marketing to reignite sales growth and increase buyer engagement. The platform is leveraging artificial intelligence (AI) and machine learning to improve search, recommendations, and seller tools. Investors who believe in that value proposition may want to take at least a small slice of the action.

Loading paragraph...

3. Pinterest

Loading paragraph...

NYSE: PINS

Today's Change

(-0.79%) $-0.17

Current Price

$21.42

Key Data Points

Market Cap

$12B

Day's Range

$20.81 - $22.36

52wk Range

$13.84 - $39.93

Volume

18.2M

Avg Vol

18.7M

Gross Margin

79.86%

Loading company_card...

The visual sharing, search, and discovery company was a huge winner when millions around the globe flocked to Pinterest (PINS -0.79%) while confined to their homes during the COVID-19 pandemic. Many are choosing to continue using the platform as it ushers in its next era of growth.

With more than half a billion monthly users, it has become a top site worldwide for merchants and creators to advertise their products via a unique picture- and video-based format.

The company is spending strategically to continue increasing its user base and ways for businesses to build their brand on Pinterest. It is generating net income and positive free cash flow, so Pinterest is in increasingly good shape.

Loading paragraph...

NASDAQ: IAC

Iac

Today's Change

(-4.25%) $-1.85

Current Price

$41.70

Key Data Points

Market Cap

$3.1B

Day's Range

$41.14 - $43.73

52wk Range

$29.56 - $46.33

Volume

14.6K

Avg Vol

1.2M

Gross Margin

60.56%

Loading company_card...

IAC (IAC -4.25%) is hardly a household name, but the holding company has fostered and sold several well-known social media and online interactive platforms. Among them are Match Group, the travel and tourism conglomerate Expedia Group (EXPE +0.75%), and the online video and streaming site Vimeo (NASDAQ:VMEO). While IAC has a proven track record of investing in and expanding businesses in the social realm of the internet, its current focus is not strictly social media.

It is also engaged with many other companies, including Dotdash Meredith, which recently rebranded to People Inc. This conglomerate includes Investopedia, People, Better Homes and Gardens, and Real Simple, and is the largest digital and print publisher in the United States.

IAC is actively investing in new product lines and diversifying audience channels to reduce reliance on traditional search revenue, which is affecting near-term margins but is expected to improve profitability in the future.

Loading paragraph...

5. Bumble

Loading paragraph...

NASDAQ: BMBL

Bumble

Today's Change

(-5.02%) $-0.15

Current Price

$2.84

Key Data Points

Market Cap

$370M

Day's Range

$2.79 - $3.02

52wk Range

$2.61 - $8.64

Volume

3.3M

Avg Vol

4.2M

Gross Margin

69.66%

Loading company_card...

Loading paragraph...

NASDAQ: META

Meta Platforms

Today's Change

(-5.50%) $-34.51

Current Price

$593.06

Key Data Points

Market Cap

$1.5T

Day's Range

$583.00 - $629.14

52wk Range

$520.26 - $796.25

Volume

1.6M

Avg Vol

16.7M

Gross Margin

81.94%

Dividend Yield

0.35%

Loading company_card...

Meta Platforms (META -5.50%) is the undisputed heavyweight of the social media world, but its true strength lies in its family of apps. By owning Facebook, Instagram, WhatsApp, and Threads, Meta reaches billions of people every single day. This massive, interconnected ecosystem creates a powerful network effect -- as more people join and share, the platforms become more valuable for everyone else, making it incredibly difficult for new competitors to lure users away.

This translates into a dominant digital advertising machine that businesses of all sizes rely on to reach their customers, providing a steady and highly profitable stream of income. What makes Meta particularly interesting right now is its aggressive pivot into artificial intelligence. While the company famously changed its name to focus on the metaverse, its future growth story revolves around using AI to make its apps even more engaging and its ads more effective.

By investing hundreds of billions of dollars into AI infrastructure, Meta is building advanced recommendation systems that keep users scrolling longer and help advertisers get better results for every dollar they spend. This blend of a massive, established user base with cutting-edge tech makes Meta a unique hybrid: a reliable, cash-rich giant that still has the moonshot potential of a Silicon Valley startup.

7. Snap

Loading paragraph...

NYSE: SNAP

Snap

Today's Change

(-5.19%) $-0.32

Current Price

$5.75

Key Data Points

Market Cap

$9.5B

Day's Range

$5.75 - $6.17

52wk Range

$3.81 - $10.41

Volume

1.2M

Avg Vol

50.1M

Gross Margin

53.09%

Loading company_card...

Snap Inc. (SNAP -5.11%) is the company behind Snapchat, an app that is famous for its fast, visual methods of communication like disappearing photos and messages. It’s incredibly popular with younger people and reaches about 90% of 13- to 24-year-olds in many major countries. Because it’s the main way this generation talks to their friends, Snap is a key player for advertisers who want to reach a young audience.

While Snap is great at coming up with new ideas, it has historically struggled to make as much money as giants like Meta. It launched a subscription service called Snapchat+ a few years back, which gives users extra features for a monthly fee.

This helps the company rely less on unpredictable ad money. Investing in Snap is a bet on augmented reality and the next generation of social media, but it could be a bit of a bumpy ride for investors compared to more stable tech stocks.

Loading paragraph...

Investing in social media stocks FAQ

Loading faq...

About the Author

Rachel Warren is a contributing Motley Fool stock market analyst covering pharmaceuticals, biotechnology, medical devices, information technology, and consumer goods. Prior to The Motley Fool, Rachel was a paralegal and legal administrator. She holds a bachelor’s degree in paralegal studies from Liberty University School of Law.

TMFRachelW

Rachel Warren has positions in Etsy. The Motley Fool has positions in and recommends Etsy, Meta Platforms, and Pinterest. The Motley Fool recommends Match Group. The Motley Fool has a disclosure policy.

Best Social Media Stocks to Buy in 2026

Key Points

Key Data Points

2. Etsy

Key Data Points

3. Pinterest

Key Data Points

Key Data Points

5. Bumble

Key Data Points

Key Data Points

7. Snap

Key Data Points

Related investing topics

Best Tech Stocks to Buy in 2026 and How to Invest in Them

FAANG Stocks: What They Are and How to Invest

Best Internet of Things Stocks for 2026 and How to Invest

AI Adoption Statistics: How Many Businesses Are Using AI?

Investing in social media stocks FAQ

About the Author

Read Next

Stocks Mentioned

Motley Fool Stock Advisor’s Latest Pick

Premium Investing Services

Key Data Points

Best Tech Stocks to Buy in 2026 and How to Invest in Them

FAANG Stocks: What They Are and How to Invest

Best Internet of Things Stocks for 2026 and How to Invest

AI Adoption Statistics: How Many Businesses Are Using AI?

Top social media stocks to consider

1. Match Group

2. Etsy

3. Pinterest

4. IAC

5. Bumble

What to look for in a social media stock

Should you buy social media stocks?

How to invest in social media stocks

Strategies for investing in social media stocks

Related investing topics

Key Data Points

Key Data Points

Key Data Points

Key Data Points

Investing in social media stocks FAQ

Should I invest in social media ETFs or individual stocks?

How do social media companies make money?

Can social media stocks provide dividends?

Are social media stocks suitable for long-term or short-term investors?

How can I diversify my portfolio with social media stocks?

How do economic downturns impact social media stocks?

FAQ

7. Snap

Key Data Points

Key Data Points

6. Meta Platforms