It’s not often a penny stock company can claim the kind of following LBG Media (LSE: LBG) enjoys. With a global reach of over 1bn and 22.7bn all-time video engagements, it’s the fifth-largest social and digital business in the UK by reach (as of April 2025).

Some of our younger readers are likely familiar with its wildly popular social media brands Lad Bible and Unilad. What began as a few college students sharing memes on social media has grown to become a fully-fledged media empire.

According to the group’s website, it’s “the world’s all-time most viewed and engaged publisher on Facebook” and “the biggest publisher on TikTok.”

But is there a lasting future in social media memes?

Price struggles

Like many early-stage penny stocks, LBG’s shares have dropped significantly since listing at 200p in late 2022. Now trading at just 35p, they’re down almost 83%.

That doesn’t scream investor confidence, yet analysts estimate the current price is 72.5% below fair value. So could this be a once-in-a-decade opportunity for investors willing to take a risk?

Impressive stats

From a numbers point of view, there’s certainly a strong argument for LBG’s future success. It enjoyed earnings growth of 42% over the past year and is expected to grow at 11.23% a year going forward.

As a micro-cap, it isn’t well-covered by analysts — but those that do follow it are bullish. All four I surveyed gave it a Strong Buy rating, with an average 12-month price target of 115p. That’s a massive 227.6% increase from today’s price!

Is that a bit optimistic? Maybe, but its surging popularity shouldn’t be overlooked. Since incorporating, the business has launched a swathe of new brands, including:

• UniLad Tech
• Betches
• Sport Bible
• Odds Bible
• Food Bible

It now has offices in London, Manchester, Dublin and New York.

Fair to say, the fledgling social media meme account has grown to become a thriving global entertainment powerhouse. But as we all know, penny stocks are inherently risky. So what should potential investors be aware of?

Platform dependency

LBG’s main risks are its dependence on advertising demand, platform-driven revenue, and AIM-listed volatility. It also carries the usual penny stock risks of lower liquidity and wider bid-ask spreads, which can make it harder to buy or sell at a good price.

Even though FY25 showed revenue growth, it’s still in a scaling phase and is investing heavily in the US, leadership hires, and acquisitions such as Betches Media.

That creates execution risk: growth plans can take longer than expected, cost more than planned, or fail to convert into sustained margins and cash flow.

The bottom line

Even the most promising growth stories can be derailed unexpectedly, particularly if they have third-party dependency. That’s likely one reason why LBG’s shifting toward a more ‘direct relationship’ model. This could help it avoid platform disruption, particularly regarding Meta‘s recent changes to advertising and privacy. Only time will tell how this pans out.

Overall, I still think it’s one of the most exciting penny stock’s on the UK market right now. For those who can stomach some volatility risk, I think it’s worth considering as a small allocation.

Mark Hartley has no positions in the shares mentioned. The Twelfth Magpie has no positions in the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor and Hidden Winners.