Some investors look at the latest innovations to outperform the stock market. That’s why many investors are rushing toward artificial intelligence stocks. It’s also the reason why many electric vehicle stocks boomed in 2020 and 2021 before coming back to earth in 2022.

However, you don’t have to invest in the latest trends. Buying and holding companies that operate in growing industries can still result in plenty of returns. While social media was innovative upon its introduction, it’s easy to take it for granted. Social networks still have plenty of growth opportunities left as more users flock to their platforms.

However, investors can also benefit from social media tools. Some software tools will generate more traction as social networks become more popular. Many companies use these social media tools to create and implement their strategies. This article will cover social media stocks to buy with the tools many business owners use to gain traction on various platforms.

Meta Platforms (META)

Meta Platforms (NASDAQ:META) has been a social media leader for decades. Facebook, Instagram and WhatsApp have billions of users and generate significant ad revenue. Meta Platforms has put its 2022 struggles behind it as high revenue growth and soaring profit margins defined the company’s 2023.

Last year’s success rubbed off on the company. Revenue increased by 27% year-over-year (YOY) in the first quarter, while net income soared by 117% YOY. Meta Platforms closed out the quarter with a 33.9% net profit margin as its year of efficiency continues.

Ad impressions increased by 20% YOY across the company’s 3.24 daily active users. The average price per ad was up by 6% year-over-year. The company’s first quarter explains why the stock has done so well in the long run. Shares are up by 45% year-to-date and have gained 161% over the past five years. The stock is rated as a Strong Buy and has a projected 3% upside from current levels.

HubSpot (HUBS)

Many businesses use social media to attract potential customers to their websites. Most companies want website visitors to become email subscribers. Then, they send messages to their audiences to build relationships and increase the likelihood of landing sales.

HubSpot (NYSE:HUBS) helps with the entire process. Companies use the customer relationships management tool to craft and execute their content strategies. The stock has more than tripled over the past five years and is rated as a Strong Buy. The average price target suggests a 16% upside.

The customer relationship management firm recently reported Q1 2024 results. Revenue increased by 23% YOY, while GAAP net income came in at $5.9 million compared to a $36.6 million net loss in the same quarter last year. HubSpot generates most of its revenue from recurring subscriptions. Once customers use HubSpot, it is very difficult to leave since their email sequences, automations and other essentials are within the HubSpot dashboard. That means steady revenue for HubSpot and plenty of gains for its investors.

Semrush (SEMR)

Semrush (NYSE:SEMR) is a search engine marketing tool that helps companies plan out their keyword research and create campaigns. Business owners use this tool to gather insights for their social media marketing strategies. Users can schedule social media posts, track the performance of each post and analyze competitors.

The stock is flat year-to-date but has gained 54% over the past year. A shift to profitability explains the recent stock gains. Semrush reported 21% YOY revenue growth in the first quarter. While revenue came to $85.8 million, GAAP net income was $2.1 million. Semrush anticipates 20% YOY revenue growth in the second quarter, and guidance also suggests that Semrush will maintain that growth rate for all of 2024.

Semrush has approximately 112,000 paying customers and $354.2 million in annual recurring revenue. The firm is signing up customers with higher annual contract values. The company reported a 32% YOY increase in the number of customers who are paying at least $10,000 annually.

On the date of publication, Marc Guberti 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.