Netflix (NASDAQ: NFLX) had a rough year in 2022 and exposed a lot of the company's biggest challenges. It's no longer the king of streaming, it's one of multiple options for streaming, and it's time to rethink Netflix's business model. Travis Hoium and Jon Quast discuss this in t
Tech stocks faced a tough 2022, with reductions in consumer spending dragging down the shares of some of the world's most valuable companies. According to IDC, in the third quarter of 2022, worldwide PC shipments declined by 15%, and smartphone shipments fell by 9.7% as consumers
This list includes well-known companies like Disney (NYSE: DIS) and Airbnb (NASDAQ: ABNB), but it also includes some stocks you may be surprised to hear about. Whether you like dividend stocks, growth stocks, or semiconductor stocks, there is something for everyone in this divers
Disney (NYSE: DIS) is a much different company than it was at the start of 2022, and odds are good it'll look a lot different at the end of 2023 than it does today.
2022 was the worst year for the S&P 500 and Nasdaq Composite since 2008. And while investors may have little dry powder left to buy stocks now, the dawn of a new year provides a refreshing opportunity to brainstorm.
Whether you're a beginner or a seasoned investor, having a list of potential investments can help you stay organized and on track with your financial goals. These days, I have several exciting growth stocks on my own buy list.
As 2022 comes to a close, many folks have endured the most challenging investing year of their lifetimes. The S&P 500 and Nasdaq Composite are both in a bear market and on track to notch their worst calendar year performances since 2008. And many experts are calling for more
Last year was a downright awful one for Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) stock. Shares of the technology giant tumbled to the tune of 40%, mirroring the lousy performances dished out by most of its tech peers.
The carnage has been widespread on the stock market in 2022, but tech investors have been hit especially hard. The Nasdaq Composite has declined over 30% this year compared to a 9% drop in the Dow Jones Industrial Average and a 20% slump in the broader S&P 500.
Once upon a time, I was a Netflix (NASDAQ: NFLX) shareholder. But then I soured on the in-house content creation strategy, versus licensing content from existing studios.
When Netflix (NASDAQ: NFLX) reports its fourth-quarter results in a few weeks, one familiar piece of information will be missing: its subscriber-growth expectations.
Apple's (NASDAQ: AAPL) stock declined nearly 30% in 2022 as investors fretted over the tech giant's persistent supply chain issues in China. A lack of clarity regarding its roadmap beyond the aging iPhone, which still generated 52% of its revenue in fiscal 2022 (ended in Septembe
High inflation and fears of a looming recession have caused a slowdown in digital ad spending. The revenue growth of Google’s parent company, Alphabet (
NASDAQ:GOOGL
) (
GOOG
), decelerated in the third quarter, while Meta Platforms (
NASDAQ:META
) reported a decline in its revenue for the second consecutive quarter. This duopoly is not only getting impacted by weak ad spending but also by growing competition from tech, retail, and streaming companies that are gradually eating into their market share.
Meta and Google Facing Intense Competition
As per
Axios, which cited
Insider Intelligence data, Google and Meta are estimated to capture 28.8% and 19.6% share of the U.S. digital ad revenue market this year. Their combined market share of 48.4% marks a decline compared to 54.7% in 2017. Furthermore, their market share is expected to drop to 43.9% by 2024.
Apple’s iOS privacy changes, the rising popularity of ByteDance’s TikTok, the Russia-Ukraine war, and macro pressures have hurt the ad revenues of Meta, which owns Facebook, Messenger, Instagram, and WhatsApp.
Insider Intelligence projects that the U.S. digital ad revenue of Amazon (
AMZN
), Apple (
AAPL
), Instacart, Microsoft (
MSFT
), Netflix (
NFLX
), TikTok, and Walmart (
WMT
) will grow at a faster rate than Meta and Google in 2023.
Google and Meta’s domestic ad revenue is expected to increase by 3% and 5%, respectively, in 2023. In comparison, U.S. ad revenue growth of Walmart, Instacart, TikTok, Spotify, Apple, Amazon, Walt Disney’s (
DIS
) Hulu, and Microsoft is projected to be 42%, 41%, 36%, 30%, 26%, 19%, 13%, and 10%, respectively. While the ad revenue generated by some of these players dwarfs that of Meta and Google, the pace of their growth is strong enough to impact the two ad giants in the years ahead.
It’s worth noting that Amazon defied the weakness in the digital ad market, with its ad revenue growing 25.4% to $9.5 billion in Q3, reflecting an acceleration compared to the 17.5% growth in Q2. In comparison, Meta Platform’s advertising revenue declined 3.7% to $27.2 billion while Alphabet’s revenue from Google advertising (includes Google Search, YouTube ads, and Google Network) grew 2.5% to $54.5 billion.
Is Alphabet Stock a Buy, Sell, or Hold?
Wall Street is bullish about Alphabet, with a Strong Buy consensus rating based on 29 unanimous Buys. The average GOOGL stock price target of $125.76 implies 42.5% upside potential.
Shares have declined 39.1% in 2022.
Is Meta a Buy?
The Street’s Moderate Buy consensus rating for Meta Platforms stock is based on 27 Buys, eight Holds, and three Sells. The average META stock price target of $148.12 suggests 23.1% upside potential.
Shares fell 64.2% in 2022.
Conclusion
Alphabet’s Google and Meta Platforms have dominated the U.S. digital ad market for several years. However, they are now losing market share to companies in the tech, e-commerce, and streaming services markets. Nonetheless, Wall Street still seems bullish about the long-term prospects of the two digital ad giants, especially that of Alphabet.
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Disclosure
Netflix (NFLX) closed the most recent trading day at $294.88, moving +1.29% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.25%. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq gained 5.91%.
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