Let's dig into the relative performance of Snap (NYSE:SNAP) and its peers as we unravel the now-completed Q4 social networking earnings season.

Businesses must meet their customers where they are, which over the past decade has come to mean on social networks. In 2020, users spent over 2.5 hours a day on social networks, a figure that has increased every year since measurement began. As a result, businesses continue to shift their advertising and marketing dollars online.

The 4 social networking stocks we track reported a mixed Q4; on average, revenues beat analyst consensus estimates by 2.1% while next quarter's revenue guidance was 3.7% above consensus. Stocks have faced challenges as investors prioritize near-term cash flows, but social networking stocks held their ground better than others, with share prices down 4.9% on average since the previous earnings results.

Weakest Q4: Snap (NYSE:SNAP)

Founded by Stanford University students Evan Spiegel, Reggie Brown, and Bobby Murphy, and originally called Picaboo, Snapchat (NYSE: SNAP) is an image centric social media network.

Snap reported revenues of $1.36 billion, up 4.7% year on year, falling short of analyst expectations by 1.5%. It was a weak quarter for the company, with a miss of analysts' revenue estimates and underwhelming revenue guidance for the next quarter.

“2023 was a pivotal year for Snap, as we transformed our advertising business and continued to expand our global community, reaching 414 million daily active users,” said Evan Spiegel, CEO.

Snap delivered the weakest performance against analyst estimates of the whole group. The company reported 414 million daily active users, up 10.4% year on year. The stock is down 36.6% since the results and currently trades at $11.06.

Read our full report on Snap here, it's free.

Best Q4: Nextdoor (NYSE:KIND)

Helping residents figure out what's happening on their block in real time, Nextdoor (NYSE:KIND) is a social network that connects neighbors with each other and with local businesses.

Nextdoor reported revenues of $55.56 million, up 4.3% year on year, outperforming analyst expectations by 8.6%. It was a very strong quarter for the company, with optimistic revenue guidance for the next quarter and an impressive beat of analysts' revenue estimates.

Nextdoor scored the biggest analyst estimates beat but had the slowest revenue growth among its peers. The company reported 41.8 million daily active users, up 4.5% year on year. The stock is up 0.7% since the results and currently trades at $2.06.

Is now the time to buy Nextdoor? Access our full analysis of the earnings results here, it's free.

Pinterest (NYSE:PINS)

Created with the idea of virtually replacing paper catalogues, Pinterest (NYSE: PINS) is an online image and social discovery platform.

Pinterest reported revenues of $981.3 million, up 11.9% year on year, falling short of analyst expectations by 0.9%. It was a weak quarter for the company, with a miss of analysts' revenue estimates and slow revenue growth.

The stock is down 14.5% since the results and currently trades at $34.82.

Read our full analysis of Pinterest's results here.

Meta (NASDAQ:META)

Famously founded by Mark Zuckerberg in his Harvard dorm, Meta Platforms (NASDAQ:META) operates a collection of the largest social networks in the world - Facebook, Instagram, WhatsApp, and Messenger, along with its metaverse focused Facebook Reality Labs.

Meta reported revenues of $40.11 billion, up 24.7% year on year, surpassing analyst expectations by 2.4%. It was a strong quarter for the company, with revenue, operating income, and EPS exceeding analysts' estimates. These beats were driven by better-than-expected daily and monthly active users along with a 21% year-on-year increase in ad impressions.

Meta delivered the fastest revenue growth among its peers. The company reported 3.98 billion monthly active users, up 6.4% year on year. The stock is up 30.6% since the results and currently trades at $515.79.

Read our full, actionable report on Meta here, it's free.

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