The 21st century boom in technology has changed the way we work and play. Whether staying in touch with a friend, showing off the latest piece of craftwork, looking for love, or a good dentist, social media is now a part of the fabric of our lives.
Investors scramble for social media stock
Trade our Social Media basket
Social media basket constituents
Alphabet Inc – Class A
Google-owner Alphabet owns the video-sharing phenomenon YouTube, after Google paid $1.65bn to acquire it in 2006.
The social networking giant, Facebook, was launched back in 2004, and famously created by Harvard university students including Mark Zuckerberg.
InterActiveCorp (IAC) is a leading US media and internet company, comprising more than 150 worldwide brands and products, including video-sharing site Vimeo. It also has a majority ownership of Match Group, whose portfolio includes dating brands Tinder, Match and Plenty of Fish.
The pioneer of online dating, US internet firm Match owns a host of well-known brands, including Hinge, OKCupid, Plenty of Fish, Tinder and Match.com.
Launched in 2010, Pinterest is a visual discovery tool, helping people to share ideas and search for inspiration across various interests. Users can search for a topic they’re interested in and pin an idea to their own board.
Snap was founded in 2011 and launched its initial public offering in 2017, and is most well-known for its Snapchat camera-based app. Its brands also include Spectacles and Bitmoji.
Created in 2006, Twitter has become a hugely popular tool with 145m active daily users, who can use up to 280 characters to communicate and interact with other users. The social media platform has become an increasingly popular source for breaking news.
Founded in San Francisco, California in 2001 and 14.6% owned by Chinese giant Tencent, Glu Mobile develops and publishes mobile games for smartphone and tablet devices. Glu's products are suitable across multiple platforms, including iOS, Android, Amazon, Windows Phone and Google Chrome.
Launched in 2008, Groupon is a global e-commerce marketplace across 15 countries, connecting subscribers with local providers by offering discounted deals on activities, travel, goods and services.
The Meet Group (formerly MeetMe), founded in 2005, provides mobile social entertainment apps and is designed to meet the need for human connection. Users can stream live video, chat, send gifts and share photos.
Headquartered in San Francisco, California, Yelp was founded in 2004 and provides a business directory and review service through its website and mobile app, publishing crowd-sourced reviews about businesses.
San-Franciso-based Zynga, founded in 2007, develops and runs social video games, focusing on mobile and social networking platforms. Zynga's mission is to connect the world through games.
Why trade on social media?
The bullish stance
- Traders and investors can trade in companies and technology they are familiar with and use on a daily basis
- Social media has become increasingly important to people’s daily lives across the globe, facilitated by fast-moving technological advances
- Ongoing technological innovation also allows online trading platforms to offer increasing choice
The bearish view
- Social media has received negative press at times due to facilitating certain organisations and allowing them to spread their message, such as far-right groups and terrorist organisations
- Similarly, some social platforms have faced criticism for not closing down some accounts quickly enough, and there are question marks over how types of abuse, such as racism, and ‘trolling’ can be completely stamped out
- There are environmental concerns around the increasing global emissions produced by powering the internet
- A number of start-ups have failed to make the grade and fallen by the wayside, and there remains a possibility that certain groups of people will turn away from social media if they feel it becomes tiresome and monotonous
Trade on share baskets
- Mobile Payments
- Renewable Energy
Find out more about the Social Media basket
Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.