4 Stocks to Tap the Growing Social Media Analytics Market
Social media has become the quickest option for people around the world to stay connected with their friends and families, while also utilizing the platform to express their opinions, highlight their creativity and uphold moments from their lives through pictures, videos, and so on. Notably, a report from Statista showed that the number of social media users in 2020 was over 3.6 billion and it is estimated that the number of users will increase to almost 4.41 billion in 2025. Interestingly, the proliferation of social media is also quickly becoming a tool for businesses and organizations to make use of, in order to gain useful insights into their customers’ perspectives, thereby allowing them to make more informed decisions with regards to their products and services.
The rising penetration of the Internet, as well as smartphones, has been instrumental in driving the growth of social media. However, owing to the huge number of social media users, it is important to sift through and analyze the vast amount of data available on such platforms and this is where social media analytics comes into play.
Notably, organizations can develop an idea about how customers are viewing their products and related problems if any. Organizations can take note of customer feedback on social media and improve upon the negative areas. This, in turn, allows them to provide improved experiences to their customers. Meanwhile, organizations can also garner an edge over their competitors by keeping track of how the competitors are conducting their operations and what strategies are working for them.
Meanwhile, the growing popularity of social media has driven the demand for digital marketing. Social media analytics provides organizations the benefit of understanding the interests and needs of their audiences, thereby allowing them to better implement their marketing strategies and engage more with the audience.
Reflective of the positive developments that social media analytics is bringing to businesses and organizations, it is likely that the market will grow in the future. Notably, a report by Mordor Intelligence stated that the social media analytics market is estimated to reach $25.96 billion in 2026 at a CAGR of 23.3% from 2021 to 2026.
4 Stocks to Watch Out For
Social media analytics is quickly becoming an integral part of businesses and organizations looking to make the most of the rising popularity of social media. Notably, social media analytics allows organizations to better engage with and understand their audience and develop suitable marketing strategies. Hence, this seems to be a good time to look at companies that stand to benefit from this rising demand for social media analytics. Notably, we have selected four such stocks that carry a Zacks Rank #2 (Buy) or 3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Adobe Inc.’s ADBE Digital Experience segment offers products, services, and solutions for creating, managing, executing, measuring, monetizing and optimizing customer experiences from analytics to commerce and it serves marketers, advertisers, agencies, publishers, merchandisers, merchants, web analysts, and so on. The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings increased 5.5% over the past 60 days. The company’s expected earnings growth rate for the current year is 17.6%.
SAP SE SAP operates as an enterprise application software company worldwide and businesses can carry out social media analysis with the help of its SAP HANA and SAP Analytics Cloud offerings. The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings increased 6.8% over the past 60 days. The company’s expected earnings growth rate for the current quarter is 11.6%.
salesforce.com, inc. CRM offers Sales Cloud to store data, monitor leads and progress, forecast opportunities, and gain insights through analytics and relationship intelligence, as well as deliver quotes, contracts, and invoices. The company also provides Service Cloud, which enables companies to deliver personalized customer service and support. The company currently has a Zacks Rank #3. The Zacks Consensus Estimate for its next-year earnings increased 0.2% over the past 60 days. The company’s expected earnings growth rate for the next five years is 18.4%.
Oracle Corporation ORCL provides Oracle Social Cloud, allowing businesses to have an insight and engage better with social media platforms, thereby driving business results. The company currently has a Zacks Rank #3. The Zacks Consensus Estimate for its current-year earnings increased 2.5% over the past 90 days. The company’s expected earnings growth rate for the current year is 15.8%.
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