Social Media Stocks Fourth Quarter Summary: Yelp (NYSE:YELP)

Analyzing Q4 Social Networking Earnings: Yelp and Its Competitors

Let’s take a closer look at how Yelp (NYSE:YELP) and other major social networking companies performed in the recently concluded fourth quarter earnings season.

The Shift to Social Media for Businesses

Over the past ten years, businesses have increasingly needed to connect with customers on social platforms. In 2020, the average user spent more than 2.5 hours daily on social media—a number that has consistently grown each year. This trend has driven companies to allocate more of their advertising and marketing budgets to digital channels.

Q4 Overview for Social Networking Stocks

Among the five social networking stocks monitored, the group delivered a solid fourth quarter. Combined revenues surpassed analyst forecasts by 2.3%, though guidance for the next quarter’s revenue came in 0.8% below expectations.

Despite these results, share prices for these companies have remained largely stable, showing minimal movement since the earnings announcements.

Yelp (NYSE:YELP) Performance

Yelp, established by former PayPal employees Jeremy Stoppelman and Russel Simmons, is a platform that enables users to find local businesses through community-driven reviews.

For the quarter, Yelp reported $360 million in revenue, unchanged from the previous year and in line with analyst predictions. However, the company’s outlook for both full-year revenue and EBITDA fell well short of Wall Street’s expectations, making it a challenging quarter overall.

Jeremy Stoppelman, Yelp’s co-founder and CEO, commented, “Yelp achieved record net revenue and robust profitability in 2025, fueled by growth in Services and product innovation, with over 55 new features and updates launched during the year.”

Yelp Total Revenue

Yelp posted the slowest revenue growth among its peers. Interestingly, the stock price has risen 6.5% since the earnings release and is currently trading at $24.31.

Top Q4 Performer: Reddit (NYSE:RDDT)

Reddit, founded in 2005 by two University of Virginia students, is a platform where users share content and engage in discussions within specialized communities known as subreddits, covering topics from finance to pop culture.

Reddit’s Q4 revenue reached $725.6 million, marking a 69.7% increase year over year and surpassing analyst estimates by 8.7%. The company not only exceeded revenue expectations but also delivered a strong EBITDA beat.

Reddit Total Revenue

Reddit led its peers with the highest revenue growth and the largest outperformance relative to analyst forecasts. The platform reported 52.5 million daily active users, a 9.4% increase from the previous year. Despite these strong results, the market reacted negatively, with the stock declining 4.6% since the report to $144.15.

Should You Consider Reddit Now?

Q4’s Weakest: Pinterest (NYSE:PINS)

Pinterest was created as a digital alternative to traditional paper catalogues and serves as a platform for discovering images and ideas.

For the quarter, Pinterest generated $1.32 billion in revenue, a 14.3% year-over-year increase, but missed analyst expectations by 0.8%. The company’s guidance for both next quarter’s revenue and EBITDA also fell significantly short of forecasts.

Among its peer group, Pinterest had the weakest performance relative to analyst estimates. The platform reported 619 million monthly active users, up 11.9% from the prior year. Notably, the stock has climbed 6.7% since the earnings release and is now priced at $19.78.

Snap (NYSE:SNAP) Update

Snapchat, initially launched as Picaboo by Stanford students Evan Spiegel, Reggie Brown, and Bobby Murphy, is a social media platform centered around image sharing.

Snap reported $1.72 billion in revenue for the quarter, up 10.2% year over year and beating analyst expectations by 0.9%. The company also exceeded EBITDA estimates and narrowly surpassed revenue forecasts.

Snap’s daily active users reached 474 million, a 4.6% increase from the previous year. However, the stock has dropped 9.7% since the earnings announcement and is currently valued at $5.34.

Meta (NASDAQ:META) Results

Meta Platforms, founded by Mark Zuckerberg in his Harvard dorm room, oversees some of the world’s largest social networks, including Facebook, Instagram, WhatsApp, Messenger, and the metaverse-focused Reality Labs.

Meta posted $59.89 billion in revenue for the quarter, a 23.8% year-over-year increase, beating analyst estimates by 2.5%. The company also provided next quarter revenue guidance above expectations and delivered a solid EBITDA beat.

Meta’s daily active user base reached 3.58 billion, up 6.9% year over year. The stock has edged down 1.1% since the earnings release and is currently trading at $661.04.

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