Among the social media giants, such as Facebook, Snap, and Twitter, it’s Pinterest that is standing head and shoulders above the rest. This should help fuel funds that have holdings of the image-sharing company.
Per a CNBC report, “Pinterest has rallied 87% in 2020, easily topping Facebook, Snap, and Twitter. The stock has gained speed in recent days after UBS and Pivotal upgraded it to a buy after blowout earnings last Thursday.”
“We’re bullish on that industry broadly – social media or, I should say really, technology,” said Ari Wald, head of technical analysis at Oppenheimer, on CNBC’s “Trading Nation.” “We think we are in a technology-led secular bull market.”
Wald, however, is rolling the dice on mainstay Facebook.
“We’re bullish on the name,” he said. “The stock broke above two-year resistance dating back to 2018 in recent months. … The range that the stock had been in the prior two years helped what was previously overbought excesses to recede.”
Social Media Exposure via ETFs
Investors looking to get social media exposure can look at funds like the Global X Social Media ETF (NasdaqGM: SOCL). SOCL seeks to provide investment results that correspond generally to the price and yield performance of the Solactive Social Media Total Return Index. The index tracks the equity performance of the largest and most liquid companies involved in the social media industry, including companies that provide social networking, file sharing, and other web-based media applications.
For a broad exposure technology play, investors can take advantage of funds like the SPDR S&P Kensho New Economies Composite ETF (NYSEArca: KOMP).
Fund facts:
- The SPDR S&P Kensho New Economies Composite ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P Kensho New Economies Composite Index (the “Index”)
- Seeks to track an index utilizing artificial intelligence and a quantitative weighting methodology to pursue the potential of a new economy fueled by innovative companies disrupting traditional industries by leveraging advancements in exponential processing power, artificial intelligence, robotics, and automation
- May provide an effective way to pursue long-term growth potential by targeting companies within the sectors driving innovation within the new economy
For more broad tech exposure, ETF investors can look to the Technology Select Sector SPDR ETF (NYSEArca: XLK). XLK tries to reflect the performance of the Technology Select Sector Index, which is comprised of technology and telecom sector of the S&P 500.
For more market trends, visit ETFTrends.com.