In this article we will take a look at the 5 best advertising stocks to buy now. For a detailed analysis of the advertising sector, go directly to the 10 Best Advertising Stocks to Buy Now.
5. Lamar Advertising Company (REIT) (NASDAQ: LAMR)
Number of Hedge Fund Holders: 36
Lamar Advertising Company (REIT) (NASDAQ: LAMR) is a Louisiana-based outdoor advertising firm founded in 1902. It is ranked fifth on our list of 10 best advertising stocks to buy now. The firm sells advertising space on billboards, logo signs, and transit displays. It operates primarily in the United States and Canada. The firm controls more than 350,000 advertising displays across the two countries. Lamar also owns and operates more than 3,600 electronic displays, which is the largest network of digital billboards in the US.
On May 4, Lamar Advertising Company (REIT) (NASDAQ: LAMR) posted results for the first quarter of 2021, reporting a revenue of $370 million, beating market estimates by more than $8.5 million. Sean Reilly, the chief executive of the firm, said that the advertising rebound was well underway and the firm had recorded an increase in national and local sales.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Fir Tree is a leading shareholder in the firm with 924,572 shares worth more than $76 million.
4. The Trade Desk, Inc. (NASDAQ: TTD)
Number of Hedge Fund Holders: 35
The Trade Desk, Inc. (NASDAQ: TTD) is a California-based technology firm. It was founded in 2009 and is placed fourth on our list of 10 best advertising stocks to buy now. The firm primarily runs a cloud-based platform which offers businesses the ability to manage advertising campaigns by using data-driven techniques. It offers integration of ideas for display, video, audio, in-app, native and social, and other forms of marketing.
On April 13, The Trade Desk, Inc. (NASDAQ: TTD) stock surged more than 1.5% after investment advisory Needham maintained a Buy rating on the firm with a price target of $1,000, predicting 40% upside potential.
At the end of the fourth quarter of 2020, 35 hedge funds in the database of Insider Monkey held stakes worth $1.1 billion in the firm, up from 23 in the preceding quarter worth $510 million.
In one of its investor letters, Polen Capital Management highlighted a few stocks and Trade Desk Inc. (NASDAQ:TTD) is one of them. Here is what Polen Capital said:
“The Trade Desk was a top contributor in the quarter. The company operates the largest programmatic advertising platform globally that enables data-driven digital advertising for ad agencies and brands. The massive shift to digital media consumption combined with the increasingly fragmented nature of consumers’ media behavior make it harder for companies to reach the right consumers in the right places. Programmatic advertising/ad buying helps companies do this more successfully. Digital media is bought in an automated fashion and machine-driven. The advertiser selects the impressions they want to buy, not the publisher. This method helps companies reach more consumers and engage with them across different touchpoints with ads that are more targeted and relevant. Additionally, companies receive more analytics to help them make decisions and measure results.
The Trade Desk has been able to scale its business, and management has been able to balance both growth and profitability. We believe that COVID-19 is a catalyst for advertisers to move in The Trade Desk’s direction. Given the increasing importance of data-driven advertising, especially in the current environment, we believe the company’s competitive position has been enhanced as a result of the pandemic.”
3. Amazon.com, Inc. (NASDAQ: AMZN)
Number of Hedge Fund Holders: 273
Amazon.com, Inc. (NASDAQ: AMZN) is a Washington-based technology firm founded in 1994. It is ranked third on our list of 10 best advertising stocks to buy now. Amazon operates one of the largest e-commerce platforms in the world and also has significant stakes in the digital streaming business. Amazon sells advertising space on its platforms to all kinds of businesses. The company aims to compete with other big technology firms that use advertising as the core revenue stream for other operations.
On May 3, Amazon.com, Inc. (NASDAQ: AMZN) was identified as one of the signature picks of investment bank Wells Fargo with a price target of $4,500. Earlier this week, Amazon reported that advertising content on its video streaming platform now reached more than 120 million users a month.
Out of the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in the firm with 4.9 million shares worth more than $16 billion.
Our calculations show that Amazon.com, Inc. (NASDAQ: AMZN) ranks 1st in our list of the 30 Most Popular Stocks Among Hedge Funds.
2. Facebook, Inc. (NASDAQ: FB)
Number of Hedge Fund Holders: 242
Facebook, Inc. (NASDAQ: FB) is a California-based firm founded in 2004. It is ranked second on our list of 10 best advertising stocks to buy now. Facebook owns and runs several social networking platforms and sells advertising space on these platforms to different businesses. The company uses the data provided by users to offer business owners targeted access to their clientele, a practice that has stirred controversy in recent years. The firm is one of two big tech giants that have a monopoly on digital advertising revenues on the internet.
Facebook, Inc. (NASDAQ: FB) stock surged close to 7% to all time highs late last month after the firm posted a strong quarterly earnings report. Investment advisory Truist boosted price targets on Facebook to $400 from $350 the same day.
At the end of the fourth quarter of 2020, 242 hedge funds in the database of Insider Monkey held stakes worth $38 billion in the firm, up from 230 in the preceding quarter worth $29 billion.
Based on our calculations, Facebook, Inc. (NASDAQ: FB) ranks 3rd in our list of the 30 Most Popular Stocks Among Hedge Funds.
1. Alphabet Inc. (NASDAQ: GOOG)
Number of Hedge Fund Holders: 179
Alphabet Inc. (NASDAQ: GOOG) is a California-based multinational technology firm founded in 1998. It is placed first on our list of 10 best advertising stocks to buy now. The firm owns and runs search engine Google, video sharing platform YouTube, as well as other Google services. It sells advertising space on all these platforms and is the largest advertising company in the world, controlling close to 40% of the market share in digital advertising.
Last month, Alphabet Inc. (NASDAQ: GOOG) reported earnings for the first quarter of 2021 and smashed analyst expectations. The record numbers posted came on the back of increased digital advertising revenue as businesses spent more on marketing to prepare for the reopening of the economy and a flurry of spending by lockdown weary consumers.
Out of the hedge funds being tracked by Insider Monkey, London-based investment firm TCI Fund Management is a leading shareholder in the firm with 2.9 million shares worth more than $5.1 billion.
Based on our calculations, Alphabet Inc. (NASDAQ: GOOG) ranks 6th in our list of the 30 Most Popular Stocks Among Hedge Funds.
Baron Opportunity Fund, in their Q1 2021 investor letter, mentioned Alphabet Inc. (NASDAQ: GOOG). Here is what Baron Opportunity Fund has to say about Alphabet Inc. in their Q1 2021 investor letter:
“Alphabet Inc., the parent company of Google, is discussed further in the Review and Outlook section above and the Top Purchases section below. Google is the world’s largest search and online advertising company, and a top cloud computing player. Shares rose in the quarter on strong fourth quarter results that saw solid revenue growth of 23% and expanding operating margins. Search grew 17%, YouTube grew 46%, and total cloud revenue grew 46%, with Google cloud computing meaningfully ahead. CEO Sundar Pichai began the earnings call with this statement: “The past year…accelerated the shift to cloud and adoption of online services. This has profound implications for all companies and consumers….Google’s products…have been a lifeline for millions of small, medium businesses hit hard by the pandemic.”
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