Best communication actions to watch right now
May 10, 2021
6 min read
This story originally appeared on StockMarket
These communication actions are all the rage on the stock market this week
In a world where social distancing is a necessity and countries around the world move in and out of isolation, alternative modes of communication become even more important. It’s here that communication stocks enter the limelight in the stock Exchange. These include companies from telecommunications to social media and news outlets. The industry has evolved as the pandemic affected the lives of everyone. Fortunately, this has evolved for the better as it has allowed people to explore other means of communication. For example, online services are used more than ever after the world was locked down. As a result, many top communication titles have gained in value due to the increasing demand for their services.
Take Twitter Inc (NYSE: TWTR) and Snap Inc (NYSE: SNAP) for example. People who have invested in these two companies over the past year would have seen significant profits. SNAP’s stock has grown over 200% over the past year, while TWTR’s stock has grown over 80% over the same period. Thus, it is understandable that investors are eager to invest in the best communication stocks in the stock market today. In light of that, here are four names you should be aware of.
Top communication actions to watch now
Zoom Video Communications Inc
Zoom Video Communications is a provider of video communication platforms and web conferencing services. It offers a cloud-native platform, which unifies cloud-based video conferencing, online meetings, group messaging, and a software-based conference room system. This makes it easy for users to enjoy Zoom meetings in their physical meeting spaces. Few companies have benefited as much from the global pandemic as Zoom. However, the ZM share has been trading sideways since the start of the year. This is likely due to the easing of restrictions on COVID-19 and people returning to work in person. Understandably, investors may not be feeling overly optimistic about ZM stock.
It should be noted that management currently expects revenue to increase 42% in fiscal 2022 to $ 3.77 billion. In addition to this, Zoom is also launching other growth initiatives such as Zoom Phone. So chances are there is still room for growth ahead of this business. Last week, cybersecurity firm Safeguard Cyber announced the introduction of its new extension Advanced Governance for Zoom Video Communications.
This increases the native security and compliance capabilities of the collaboration platform. With access to Zoom’s archiving API, Safeguard offers additional security, cyber defense, compliance and data protection. Considering the importance of cybersecurity, it might ease the minds of users and might even encourage more users to use its platform. All things considered, is this a buying opportunity for ZM stock?
Next on the list, we have the pioneers of TV streaming, Roku. The company produces streaming hardware and operates its proprietary streaming platform. Additionally, it enables content publishers to build and monetize large audiences, and provides advertisers with unique capabilities to engage consumers. In a nutshell, Roku facilitates content from other mainstream streaming services. This would include Netflix (NASDAQ: NFLX), Apple TV (NASDAQ: AAPL) and Disney + (NYSE: DIS). Subsequently, the company receives a reduction in the subscription fees paid through its platform while making advertising revenue from its free content. Therefore, it would put Roku in a strong position for growth, regardless of which streaming company comes out on top.
It’s no secret that the ROKU stock has performed relatively well over the past year. It records gains of over 140% during this period. On top of that, the stock rose 11.55% at Friday’s closing bell. This is likely due to the recent first quarter results announced by the company. In the report, revenue soared 79% from the last year quarter to $ 574.2 million.
In addition, usage was strong, it added 2.4 million accounts in the quarter, the number of accounts on the platform increased 35% year over year. As it stands, Roku’s Operating System (OS) is the premier smart TV operating system in the United States. All of this, coupled with the company’s profitability profile, reminds investors that Roku is well positioned for the future. With that in mind, is ROKU stock a buy for you right now?
iHeartMedia is an audio media company that operates through two sectors: the music collection sector and the accompaniment sector. Its leading position in audio spans multiple platforms, including more than 860 live broadcast stations. The company’s digital iHeartRadio service is available on more than 250 platforms and 2,000 devices, including smart speakers, smartphones, TVs, and even game consoles. As it stands, the IHRT stock has increased 240% over the past year.
Last Friday, iHeartMedia announced its results for the first quarter, where it posted revenue of $ 706.67 million. The digital audio group has maintained strong growth and a profit trajectory, where revenues grew 70% year over year. On top of that, podcast revenue has grown 142% over the past year.
Going forward, the company launched the first of its kind private marketplace for brands last week. This will allow brand advertisers to compose their audience targets and specific rates according to their marketing needs. Considering the growth potential within the industry, will you consider IHRT stock to be one of the best communications stocks to buy?
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To finish the list, we have the social media giant that doesn’t need to be introduced, Facebook. Impressively, the company’s products empower more than 3 billion people worldwide. In addition, more than 200 million businesses use its apps to connect with customers and grow.
Indeed, American consumers do most of their shopping on the Internet with established platforms operated by companies like Amazon.com Inc (NASDAQ: AMZN). However, in other parts of the world such as Southeast Asia, almost half of all e-commerce takes place through social media or chat rooms, including on Facebook apps. Social commerce accounted for about 44% of Southeast Asia’s $ 109 billion e-commerce market last year, according to Bain & Co.
From here we can see that Facebook is not only a communication juggernaut, but thriving in other areas as well. In April, the company announced its first quarter results. It reported revenue of $ 26.17 billion for the quarter, up 48% from the previous year. In addition, net profit rose 94% to $ 9.5 billion. Considering the endless possibilities of Facebook, would you invest in FB stocks?