Social Media Vue is a concentrated share portfolio of high conviction positions in ten stocks which are best placed to profit from the unstoppable rise of social media.
Every quarter our Investment Team conducts a thorough review of this portfolio, taking into account recent earnings and related news flow, and provides our investors with an update on its performance and any changes made to the Vue.
Macrovue’s Social Media Vue has been one of our stronger performers over the last twelve months, having returned +37.11% (as of 30 April 2018).
By means of comparison, the ASX 200 generated a total return of +5.46% over the same period.
Top contributors to the performance were:
- Weibo Corp Sponsored ADR Class A (NASDAQ:WB): +103.62
- YY Inc. Sponsored ADR Class A (NASDAQ:YY): +95.49%
- Twitter Inc. (NYSE:TWTR): +82.67%
The 3 best-performing social media shares in the portfolio
Facebook Inc. Class A (NASDAQ:FB)
Certainly this sector has been under pressure by the negative news flow concerning Facebook, but we believe this to be temporary in nature and not unusual in fast growing leading edge companies.
Facebook’s pledge to protect personal data and establish guidelines for political advertising are positive for the group as a whole, as is FB’s much better than expected first quarter earnings result.
Facebook has gained +15% since its low set at the end of March. We are happy to remain holders of the stock as it is the cheapest stock in the group by far, trading at 17.5x 2019 EPS (earnings per share).
We also believe FB will remain a favoured platform for advertisers and users going forward and the monetisation of Facebook’s “other” two businesses WhatsApp and Instagram is now closer to fruition and should add significant incremental growth.
Weibo Corp. Sponsored ADR Class A (NASDAQ:WB)
Analysts are positive on Weibo and believe the company is well-positioned for strong growth given the dynamics of China's booming social media advertising, live video and broadcasting.
Its platform's high proportion of celebrity and entertainment oriented content, with an emphasis on timeliness, helps maintain Weibo's position as one of the dominant leaders in China's social media.
A partnership with Alibaba, its biggest investor, should help Weibo draw more users and advertisers. Advertisers in China are likely to continue to shift toward social media, attracted by significant return-on-investment potential and high user engagement.
As well, Weibo's sharp focus on user acquisition in third- and fourth-tier cities should be a catalyst for user growth as internet penetration climbs in China.
The release of Weibo Lite, a less data-intensive variant of the main app, should help the company grow its 172 million daily active users by onboarding those living in regions with poor internet access. Partnering with domestic smartphone manufacturers to have Weibo pre-installed in devices should help, as affordable smartphones are commonly used in lower-tier cities.
Twitter Inc. (NYSE:TWTR)
Twitter is beefing up its video business. The company has announced recently that it has entered into more than 30 deals with publishers including Walt Disney and NBCUniversal to bolster up its video offerings with more news, entertainment and sports.
NBCUniversal, (owned by media giant Comcast Corp)., agreed to distribute live video and clips on Twitter through its media properties which include NBC News, MSNBC and E! News.
Disney is now working with Twitter to create live sports programming and other content. Disney’s ESPN will roll out "SportsCenter Live," which will produce breaking news sports coverage on Twitter.
Twitter’s strategy is to become an online destination for live video in order to broaden the company’s appeal among users and advertisers, who are increasingly keen to market through premium video.
The number of daily video views on Twitter has almost doubled in the past year, and the format has contributed more than half of ad revenue for two quarters running. The new deals may help Twitter compete better against larger, better resourced rivals, including Facebook.
Learn more about Macrovue’s Social Media share portfolio.
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.
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