Social media has become a huge part of our lives and the increasing amount of time we spend on it is proof that it is indispensable to us. Social media giants make a huge amount of money from advertising on their platforms, and marketers are now ready to expand their budgets and attract new customers. This means social media companies are going to have an excellent 2024; the momentum is already set, and now is the time for smart investors to make their move and take a position in social media stocks.

With a steady rise in the number of users worldwide, these companies are set to grow. Social media advertising will dominate this decade, and investors should have these social media stocks on their radar.  Let’s take a look at them.

Meta Platforms (META)

Of course, you guessed it!

Meta Platforms (NASDAQ:META), one of the biggest social media giants is the first stock that comes to mind. It has bounced back and how! The company suffered more than it deserved to, and the stock went as low as $99 in 2022, but it has gained strength and is exchanging hands for $474 today. The stock is up 80% in the past 12 months and 36% year-to-date. This speaks a lot about the company’s ability to bounce back from any situation. 

Meta Platforms got a huge boost from the growth in online advertising, and this helped the revenue soar. In the first quarter, its advertising revenue jumped 27% to hit $35.64 billion. It saw a 17% increase in net income and a 7% increase in users across all its apps.

It also announced a dividend of $0.50 per share per quarter and is taking a $50 billion share buyback program. The company has gained attention for its Metaverse investments. It has increased the cost projections for metaverse and it shows that the management is going aggressively behind this ambitious project. The high capital spend will give a boost to artificial intelligence abilities and generate a higher return on the investments.

Meta has set a solid momentum for the second half of the year, and it could hit $500 very soon. 

Pinterest (PINS)

Up 16% YTD and 72% in the past 12 months, Pinterest (NYSE:PINS) stock has been on a solid rally and is trading for $42 as of writing. This is a solid rebound from the lows of $19 it hit in 2022. The platform allows people to share photos and videos and it had some of its best days during the pandemic. However, the days after the pandemic were quite difficult but Pinterest managed to not only survive but thrive.

The company has 500 million monthly active users and the fundamentals have been impressive. Pinterest beat EPS and revenue expectations with a 23% jump in revenue in the first quarter to hit $740 million. Its net losses dropped 88% to $25 million in the quarter, and the average revenue per user jumped 10% YOY, driven by gains in North America. 

This was a milestone quarter for the company and it has set the road for growth in 2024. Besides becoming a highly reliable advertising platform, Pinterest has also grown its e-commerce segment. 

Just like Meta, Pinterest is also benefitting from online advertising, and this is one area where it can keep growing. Having posted a healthy comeback, I think Pinterest’s worst days are over, and it is set to keep moving higher. 

15 analysts on TipRanks have a buy rating for the stock with an average price target of $46, a 9% upside. 

Reddit (RDDT)

After its recent debut on the stock market, Reddit (NYSE:RDDT) stock is already up 29% in the past month and is trading for $57. There is a major catalyst that has led to this jump. Reddit has entered into a partnership with OpenAI. 

Through this partnership, more users are expected to move towards Reddit. Since OpenAI has agreed to be an advertising partner for Reddit, this can help improve advertising and impact the revenue. While this partnership is fairly new, we will only be able to see its impact on the financials in the coming quarters.

However, Reddit impressed investors with the first-quarter results and it was also its first earnings report after going public. It reported a better-than-expected quarter with sales of $243 million and a loss of $8.19 per share. The sales jumped 48% YOY, and it reported 82.7 million daily active users. Its average revenue per user also increased 8% YOY to $2.94. 

Reddit is making the most of its early days after its debut on the stock market, and getting in on this ride will benefit long-term investors. While the company has a lot to prove, it is on its way to making the most of the opportunity of social media advertising. 

On the date of publication, Vandita Jadeja did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.