5 Social Media Stocks Beating Facebook at Its Own Game  | | Luke Lango | Facebook made headlines this week after the social media company topped a $1 TRILLION valuation – joining tech heavyweights Apple, Microsoft, Amazon, and Alphabet in the "Trillion Dollar Club." That's a big number. And Facebook achieved such an enormous valuation by building an ecosystem of social media products – Facebook, Instagram, Messenger, and WhatsApp – that the world uses, for several hours every single day, to do everything from communicate with friends, to watch funny videos, to post life updates. It's as impressive of a global ecosystem as the world has ever seen in business. But now, I think that ecosystem is going to erode. Here's my thesis in a nutshell: Facebook's ecosystem of products is becoming less and less popular, and less and less used, particularly by younger audiences. Inevitably, this will end with Facebook losing users, engagement, and ad revenues. Let's break that thesis down, product-by-product… First up, we have Facebook. Who actually uses Facebook anymore? I mean, c'mon… we all have a Facebook profile because it's like the "internet ID." But much like your real ID, you only use Facebook when you have to – to login to another app, or check the details of an event, or do some housekeeping on your personal info. Facebook is not something most folks use anymore for entertainment, or information, or anything besides social "house-keeping." It's yesterday's top social media platform. And if you ask any "kids" what they think of Facebook, they'll clearly tell you it's for Grandpas and that's it. Next, we have Instagram. Now, Instagram has been the redeeming quality for Facebook for several years. The core Facebook app has been losing popularity and appeal, especially among younger demographics, since 2015. But Instagram has kept the user growth narrative robust, because it has maintained a solid grasp on those younger audiences that are churning from Facebook. But Instagram is starting to lose its "edge." In Piper Jaffray's Spring 2021 Taking Stock With Teens Survey, Instagram fell to third most popular social media app among U.S. high school students, behind Snapchat and TikTok. In that same survey a year ago, Instagram ranked first. And the gap here is fairly large (with Instagram's mindshare clocking at 24%, and both Snapchat and TikTok reaching 30%-plus mindshare) while Instagram's trajectory looks decidedly negative (mindshare dropped 700 basis points year-over-year). Under the hood, we believe that Snapchat and TikTok have simply been more innovative than Instagram, and have consistently and regularly rolled out newer, fresher, and more relevant features than Instagram over the past year. The result is that consumers are spending less time on IG, and more time on TikTok and Snapchat. So… we think this whole dynamic of Instagram saving Facebook from usage erosion is actually about to end… and if so, that's bad news for Facebook. Lastly, we have Messenger and WhatsApp. These tools have durable appeal, and limited competition. But, at the end of the day, they're messaging platforms, and messaging platforms are notoriously difficult to monetize unless you charge for them – and as soon as Messenger and WhatsApp aren't free, is the moment they aren't popular anymore. And don't even get me started on all of Facebook's "new" products. They're all duds, for the most part. Have you ever bought anything on Facebook Marketplace? Facebook Watch was supposed to be the next Netflix – it's basically just regurgitated YouTube videos, on your Facebook feed. Workplace had the potential to be Slack, before Slack. That didn't happen. IGTV has been a flop. Instagram Reels "sucks," according to multiple online reviews. Net net, my verdict on Facebook is very simple: What you have here is a giant digital advertising empire quickly losing mindshare. Not good… Unless you're invested in the companies that are stealing that mindshare… Which is exactly where I think you should be invested today. You need to be invested in the social media companies that are stealing Facebook's thunder and eating its lunch, too. So… which companies am I talking about? Well, there's the most popular social media app among young consumers: Snap (SNAP). That app reaches over 75% of the 13–34-year-old population in the U.S. and the management team is relentlessly innovative, with augmented reality features, LiDAR filters, geotagging, original content, and more. Great company. Great stock. There's also Pinterest (PINS), who is doing something really cool in the overlap of social media and e-commerce, and is basically building what Facebook Marketplace could've been had Facebook executed it right. Huge potential in this business as social commerce becomes more normal. Match (MTCH) is worth a look. They own Match.com, Tinder, PlentyOfFish, Hinge, etc. – basically all the dating apps in the world. Facebook has tried time and time again to make inroads against Match. They've never succeeded. Another online dating play worth watching is Bumble (BMBL). And lastly, there's Spotify (SPOT). Spotify is an audio streaming platform. But don't discount the social media aspect of the platform, especially with the company's new Greenroom live-chat audio rooms app. Between those 5 companies, you have 5 companies that are beating Facebook at its own game – and 5 media stocks you should consider buying right now. That's why I've added a few of those stocks to my ultra-exclusive investment advisory called The Daily 10X Stock Report that is dedicated exclusively to highlighting this next generation of world-changing technology disruptors. In that portfolio, we're not investing in the Big Tech heavyweights that have already soared in value. Those stocks have already had their day in the sun (like Facebook). Instead, we're investing in the next wave of tech companies that will unseat today's tech giants. We're not investing in Facebook… we're investing in the next Facebook… because that's where the big gains are hiding in plain sight. We uncover those big gains for you, and in so doing, put you in a position to 2X… 5X… even 10X your money over time. You don't want to be left holding the bag on Facebook, while all your friends are making money on the next Facebook. So, click here to find out more. Sincerely, 
Luke Lango
Editor, Hypergrowth Investing On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article. By uncovering early investments in hypergrowth industries, Luke Lango puts you on the ground-floor of world-changing megatrends. It's how his Daily 10X Report has averaged up to a ridiculous 100% return across all recommendations since launching last May. Click here to see how he does it. | 
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