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It’s not typically a penny inventory firm can declare the sort of following LBG Media (LSE: LBG) enjoys. With a worldwide attain of over 1bn and 22.7bn all-time video engagements, it’s the fifth-largest social and digital enterprise within the UK by attain (as of April 2025).
A few of our youthful readers are probably conversant in its wildly fashionable social media manufacturers Lad Bible and Unilad. What started as a number of school college students sharing memes on social media has grown to develop into a fully-fledged media empire.
Based on the group’s web site, it’s “the world’s all-time most considered and engaged writer on Fb” and “the most important writer on TikTok.”
However is there a long-lasting future in social media memes?
Value struggles
Like many early-stage penny shares, LBG’s shares have dropped considerably since itemizing at 200p in late 2022. Now buying and selling at simply 35p, they’re down virtually 83%.
That doesn’t scream investor confidence, but analysts estimate the present value is 72.5% under honest worth. So might this be a once-in-a-decade alternative for buyers prepared to take a threat?
Spectacular stats
From a numbers viewpoint, there’s actually a powerful argument for LBG’s future success. It loved earnings progress of 42% over the previous yr and is predicted to develop at 11.23% a yr going ahead.
As a micro-cap, it isn’t well-covered by analysts — however those who do observe it are bullish. All 4 I surveyed gave it a Sturdy Purchase score, with a median 12-month value goal of 115p. That’s a large 227.6% enhance from at this time’s value!
Is {that a} bit optimistic? Possibly, however its surging recognition shouldn’t be missed. Since incorporating, the enterprise has launched a swathe of latest manufacturers, together with:
- UniLad Tech
- Betches
- Sport Bible
- Odds Bible
- Meals Bible
It now has places of work in London, Manchester, Dublin and New York.
Truthful to say, the fledgling social media meme account has grown to develop into a thriving international leisure powerhouse. However as everyone knows, penny shares are inherently dangerous. So what ought to potential buyers concentrate on?
Platform dependency
LBG’s most important dangers are its dependence on promoting demand, platform-driven income, and AIM-listed volatility. It additionally carries the standard penny inventory dangers of decrease liquidity and wider bid-ask spreads, which may make it more durable to purchase or promote at a very good value.
Although FY25 confirmed income progress, it’s nonetheless in a scaling section and is investing closely within the US, management hires, and acquisitions corresponding to Betches Media.
That creates execution threat: progress plans can take longer than anticipated, price greater than deliberate, or fail to transform into sustained margins and money move.
The underside line
Even essentially the most promising progress tales might be derailed unexpectedly, significantly if they’ve third-party dependency. That’s probably one cause why LBG’s shifting towards a extra ‘direct relationship’ mannequin. This might assist it keep away from platform disruption, significantly relating to Meta‘s current modifications to promoting and privateness. Solely time will inform how this pans out.
General, I nonetheless suppose it’s some of the thrilling penny inventory’s on the UK market proper now. For individuals who can abdomen some volatility threat, I believe it’s value contemplating as a small allocation.
Mark Hartley has no positions within the shares talked about. The Twelfth Magpie has no positions within the shares talked about. Views expressed on the businesses talked about on this article are these of the author and subsequently could differ from the official suggestions we make in our subscription companies corresponding to Share Advisor and Hidden Winners.
