
"If you've got $1,000 ready to deploy, now is a perfect time to do it. The stock market can sometimes end the year on a strong note because fund managers are moving their portfolios into stocks they believe will be successful in the year ahead. The idea here is to look for stocks that could have a strong 2026, but also have an even brighter future beyond that. The advertising market is strong Advertising is a cyclical business and goes up and down based on the economic outlook."
"Currently, the primary concerns with the economy have to do with artificial intelligence spending, not as much with what the consumer is doing. So, companies are continuing to spend at a normal pace in the advertising world. This is showing up in companies that derive a significant amount of their revenue from ad-related sources, like these three. Meta Platforms gets nearly all of its revenue from ads, with $50 billion of its $51.2 billion in Q3 revenue coming from ad sources."
"Meta Platforms, formerly known as Facebook, has an incredibly successful social media business with properties like Facebook, Instagram, and Threads. Although there was some fear that TikTok could dethrone it, Meta has clearly secured its place at the top of the social media world. Its stock has been a bit weak over the past few weeks because investors didn't love how much it planned to spend on data centers in 2026, but as many big tech CEOs have told investors, the risk of underspending is far greater than overspending in the AI buildout."
The advertising market is currently strong, creating an attractive environment for deploying capital. Fund managers often shift into stocks expected to perform well in the coming year, making late-year investment opportunities important for 2026 and beyond. Advertising is cyclical, but current economic concerns center on AI spending rather than consumer demand, so companies continue normal ad expenditures. Meta Platforms derives nearly all revenue from ads—about $50 billion of $51.2 billion in Q3—and maintains dominant social properties like Facebook and Instagram despite TikTok competition. Meta's stock weakness reflects planned data-center spending for 2026, while Alphabet earns roughly $74.2 billion of $102.3 billion from ads and benefits from Google Search and generative AI integration.
Read at The Motley Fool
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