2 Painfully Obvious Stocks You May Be Ignoring

Tariffs are live! Hang on, tariffs are postponed! It's hard to keep up with the current state of tariffs. But one thing's for sure: Social media is buzzing with speculation about it.  

The very fact that there's so much discourse could be a boon to social media companies. Here's a simple example of why. More people logging in and posting means more people are exposed to advertisements — a massive source of income for social media companies. 

As an investor, how can you benefit? By looking at social media stocks.

Twitter would be an obvious stock to look at— but it's no longer public, so you can't invest in shares on the stock market anymore.  

Likewise with Bluesky Social, which many have called “the next Twitter.” That company's private too. (But there could be ways for savvy investors to invest indirectly — find out more here.)

But have no fear — there are more accessible options for retail investors. 

Below you'll find two stocks that could benefit from this trend.

Despite being well-known companies (you'll probably recognize both), they're nonetheless flying below the radar amid tariff talk. 

With solid financials and excellent ratings from our quant rating system, they've both got a lot more going for them than just a potential boost from increased social media usage in the face of tariffs. As such, they're both worth consideration on your watchlist:

1. Meta Platforms (NASDAQ: META)

Meta Platforms (NASDAQ: META) owns Facebook, Instagram, and WhatsApp, making it the largest social media company in the world. 

Despite its massive size, Meta's earnings grew by 60% year over year in 2024, driven by a focus on operating efficiencies. 

Meta has also shown impressive AI-driven growth, and a successful AI integration strategy could be instructive for how other platforms like Bluesky might evolve.

META also scores highly according to our quant ratings system, Zen Ratings. It earns an overall grade of B, which is reached through a rigorous 115-factor review. Stocks with an overall B rating have historically outperformed the market, delivering an average of 19.88% annual returns. 

Digging into the 7 Component Grades that make up the overall Zen Rating, you can see that META scores highly for Financials and Momentum — two key areas that point to potential for long-term success. 

Note: Zen Ratings are updated daily. See all 7 Component Grades for META here.

Research META here > 

2. Reddit Inc. (NYSE: RDDT)

The latest social media platform to IPO, Reddit Inc. (NYSE: RDDT) began trading in late March of 2024. Since then, they’ve more or less been on a continuous upward trajectory without any major corrections to speak of. 

Despite surging nearly 200% since going public (and that includes today's dip), some of Wall Street’s premier equity researchers think that management’s guidance is conservative — and that RDDT stock could outperform peers and rivals.

Despite recent market volatility, RDDT earns a B from our Zen Ratings system, with standout Component Grades in two key areas: Growth and from our AI factor. The latter is of great interest because it sifts through mountains of data to discern patterns and potential that might not be evident to mere mortals like us. (Read more about using AI to invest smarter here.)

Combined with the fact that the max 1-year forecast for RDDT suggests nearly 50% potential upside, it’s well worth tracking this social media darling.

Research RDDT here >

No, these businesses aren’t exactly Twitter. But the stocks are enjoying the glow of greater social media adoption and have enjoyed more investor attention since Twitter went private. That alone might not be a case to invest, but the strong fundamentals and excellent Zen Ratings in both cases make them watchlist-worthy.

Start your free watchlist on WallStreetZen today.

What to Do Next?

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