Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Reddit (NYSE:RDDT) and its peers.
Businesses 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.
The 5 social networking stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 4% while next quarter’s revenue guidance was 1.1% above.
While some social networking stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.4% since the latest earnings results.
Best Q2: Reddit (NYSE:RDDT)
Founded 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.
Reddit reported revenues of $804.9 million, up 61.1% year on year. This print exceeded analysts’ expectations by 9.9%. Overall, it was a stunning quarter for the company with a solid beat of analysts’ EBITDA estimates and EBITDA guidance for next quarter exceeding analysts’ expectations.
“In an increasingly automated web, the value of real human perspective has never been higher. Reddit’s commercial momentum reflects that,” said Steve Huffman, Founder and CEO of Reddit.
Reddit pulled off the biggest analyst estimate beat, highest guidance raise, and fastest revenue growth in the group. The company reported 53.2 million daily active users, up 5.8% year on year. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 9.1% since reporting and currently trades at $161.83.
Read why we think that Reddit is one of the best social networking stocks, our full report is free.
Snap (NYSE:SNAP)
Founded 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.
Snap reported revenues of $1.60 billion, up 18.9% year on year, outperforming analysts’ expectations by 3.8%. The business had an exceptional quarter with a solid beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 15.6% since reporting. It currently trades at $5.83.
Is now the time to buy Snap? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Meta (NASDAQ:META)
Famously 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.
Meta reported revenues of $60.8 billion, up 28% year on year, exceeding analysts’ expectations by 1%. Still, it was a slower quarter as it posted revenue guidance for next quarter slightly missing analysts’ expectations.
Meta delivered the weakest performance against analyst estimates and weakest guidance update among its peers. The company reported 3.6 billion daily active users, up 3.4% year on year. Interestingly, the stock is up 13.5% since the results and currently trades at $664.79.
Read our full analysis of Meta’s results here.
Yelp (NYSE:YELP)
Founded by PayPal alumni Jeremy Stoppelman and Russel Simmons, Yelp (NYSE:YELP) is an online platform that helps people discover local businesses through crowd-sourced reviews.
Yelp reported revenues of $375.5 million, up 1.4% year on year. This result surpassed analysts’ expectations by 2.3%. Overall, it was a strong quarter as it also logged an impressive beat of analysts’ EBITDA estimates and full-year EBITDA guidance meeting analysts’ expectations.
Yelp had the slowest revenue growth of the whole group. The stock is down 13.4% since reporting and currently trades at $21.69.
Read our full, actionable report on Yelp here, it’s free.
Pinterest (NYSE:PINS)
Created with the idea of virtually replacing paper catalogues, Pinterest (NYSE: PINS) is an online image and social discovery platform.
Pinterest reported revenues of $1.18 billion, up 18.2% year on year. This print beat analysts’ expectations by 2.8%. It was a very strong quarter as it also put up a solid beat of analysts’ EBITDA estimates and EBITDA guidance for next quarter topping analysts’ expectations.
The company reported 640 million monthly active users, up 10.7% year on year. The stock is down 23.4% since reporting and currently trades at $19.60.
Read our full, actionable report on Pinterest here, it’s free.
Market Update
Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.
Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.
By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.
Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.