Are Facebook and Twitter good stocks to invest in?

Investors are probably more divided on social media stocks than any other sector in the market. On the one hand, the internet is where eyeballs are headed, and that's where advertisers want to be. Both Twitter and Facebook have proven adept at growing their user base despite stiff competition from Snapchat and other alternatives.

Social media businesses also enjoy strong network effects, making early movers challenging to dislodge. It's not surprising that two "granddads" of social media, Facebook (NASDAQ: FB) and Twitter (NYSE: TWTR), performed well in 2020.

Facebook's earnings rose 75% in the past year, and Twitter's rose 140%, compared to a 62% increase for the S&P 500.