5 Best Advertising Stocks To Invest In

3. Meta Platforms, Inc. (NASDAQ:META)

Number of Hedge Fund Holders: 225

Meta Platforms, Inc. (NASDAQ:META) is one of the top advertising stocks to invest in. Meta Platforms, Inc. (NASDAQ:META) is seeing rapid growth in ad spend from small businesses. During the second quarter, advertising accounted for a whopping 98.4% of Meta’s revenue as it grew to $31.5 billion.

Meta Platforms, Inc. (NASDAQ:META) is using AI to boost its ads revenue. Meta Platforms, Inc. (NASDAQ:META) talked about its AI-based advertising initiatives during its Q2 earnings call and said:

“Beyond Reels, AI is driving results across our monetization tools, through our automated ads products, which we call Meta Advantage. Almost all our advertisers are using at least one of our AI driven products. We’ve also deployed Meta Lattice, a new model architecture that learns to predict an ads performance across a variety of datasets and optimization goals. And we introduced AI Sandbox, a testing playground for generative AI powered tools like automatic text variation, background generation and image outcropping. Business messaging is another key piece of our monetization strategy and we recently announced that the 200 million users of our WhatsApp Business app will now be able to create Click-to-WhatsApp ads for Facebook and Instagram without needing a Facebook account.”

Read the full earnings call transcript here.

Aristotle Large Cap Growth Strategy made the following comment about Meta Platforms, Inc. (NASDAQ:META) in its Q3 2023 investor letter:

“Meta Platforms, Inc. (NASDAQ:META), formerly known as Facebook, is a global technology company specializing in social networking and the development of augmented and virtual reality technologies. Founded in 2004 and headquartered in Menlo Park, CA, the company has expanded its reach to nearly three billion monthly active users worldwide.

We see Meta as well-positioned to capture a significant share of the rapidly growing digital advertising market and has created an interconnected ecosystem of apps that drives higher user engagements. While leveraging AI and machine learning technology, Meta should see an acceleration in the development of targeted digital advertising capabilities and enhance the user experience across its platform. We see near-term catalysts in Rising Reels and Messenger revenue monetization and an expected robust 2024 political and Olympic advertising. Year-to-date, investors have been optimistic about the company’s pivot away from a focus on metaverse investments to an emphasis on profitability and growth in what the company calls its “Year of Efficiency.”