As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the social networking industry, including Meta (NASDAQ: META) and its peers.

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 5 social networking stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 4% while next quarter’s revenue guidance was 1.1% above.

While some social networking stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.3% since the latest earnings results.

Weakest Q2: 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 Reality Labs.

Meta reported revenues of $60.8 billion, up 28% year on year. This print exceeded analysts’ expectations by 1%. Despite the top-line beat, it was still a slower quarter for the company with revenue guidance for next quarter slightly missing analysts’ expectations.

"AI is accelerating our core business today, powering our next generation of products, and opening the door to entirely new enterprise opportunities," said Mark Zuckerberg, Meta founder and CEO.

Meta delivered the weakest performance against analyst estimates and weakest guidance update in the group. The company reported 3.6 billion daily active users, up 3.4% year on year. Interestingly, the stock is up 20.4% since reporting and currently trades at $705.36.

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

Best Q2: Reddit (NYSE: RDDT)

Founded in 2005 by two University of Virginia roommates, Reddit (NYSE: RDDT) facilitates user-generated content across niche communities (called subreddits) that discuss anything from stocks to dating and memes.

Reddit reported revenues of $804.9 million, up 61.1% year on year, outperforming analysts’ expectations by 9.9%. The business had a stunning quarter with an impressive beat of analysts’ EBITDA estimates and EBITDA guidance for next quarter exceeding analysts’ expectations.

Reddit delivered the biggest analyst estimate beat, highest guidance raise, and fastest revenue growth of the whole group. The company reported 53.2 million daily active users, up 5.8% year on year. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 12.7% since reporting. It currently trades at $155.42.

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

Yelp (NYSE: YELP)

Founded by PayPal alumni Jeremy Stoppelman and Russel Simmons, Yelp (NYSE: YELP) is an online platform that helps people discover local businesses through crowd-sourced reviews.

Yelp reported revenues of $375.5 million, up 1.4% year on year, exceeding analysts’ expectations by 2.3%. It may have had the worst quarter among its peers, but its results were still good as it also locked in an impressive beat of analysts’ EBITDA estimates and full-year EBITDA guidance meeting analysts’ expectations.

Yelp delivered the slowest revenue growth among its peers. As expected, the stock is down 20.5% since the results and currently trades at $19.90.

Read our full analysis of Yelp’s results here.

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 $1.18 billion, up 18.2% year on year. This print surpassed analysts’ expectations by 2.8%. Overall, it was a very strong quarter as it also recorded a solid beat of analysts’ EBITDA estimates and EBITDA guidance for next quarter topping analysts’ expectations.

The company reported 640 million monthly active users, up 10.7% year on year. The stock is down 13.9% since reporting and currently trades at $22.02.

Read our full, actionable report on Pinterest here, it’s free.

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 $1.60 billion, up 18.9% year on year. This result topped analysts’ expectations by 3.8%. It was an exceptional quarter as it also put up a solid beat of analysts’ EBITDA estimates.

The stock is up 20.3% since reporting and currently trades at $6.06.

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

Market Update

Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.

Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.

By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.