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08. Buy Stocks

Social Media

The social media industry has also been an attractive target for day trading. The massive influx of online media companies—think Snapchat and Facebook—has been followed by a high trading volume for their stocks.

Moreover, debate rages over the capability of these companies to transform their extensive user bases into a sustainable revenue stream. While stock prices theoretically represent the discounted cash flows of their issuing corporations, recent valuations also take into account the earnings potential of the companies. Thus, some analysts argue this has resulted in higher stock valuations than the fundamentals suggest. Either way, social media continues to be a popular day-trading stock group.

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