One Stock Dominating the Digital Ad Resurgence

Meta’s ambitious ad plans are paying off – and there are more profits to come… [Derby City Daily logo]( [Derby City Daily logo]( August 21, 2024 [[One Stock Dominating the Digital Ad Resurgence]( By Andy Swan By all accounts, 2024 is set to be a banner year for advertising spend. After a notably weak 2022, special events, including the [Paris Olympics]( and a competitive U.S. election cycle, are providing an outsized boost. SPONSORED AD [Follow the AI Money: Where Elon Musk, Sam Altman and Mark Zuckerberg’s Trillions Are Headed Now]( In what Time magazine is calling “a winner-takes-all battle” in Silicon Valley, Mark Zuckerberg... Elon Musk... and Sam Altman of OpenAI are all racing to be the first to achieve Artificial General Intelligence (AGI). With more than $7 trillion potentially being funneled toward this goal, a world where AI surpasses human intelligence could become a reality within 24 months, according to Musk. The time to prepare your portfolio is NOW, not later. [Learn how to do that here...]( (By clicking the link, your email address will automatically be added to the Event RSVP list.) META’s Ambitious Plans for Ad Dominance Meta Platforms (META) is riding digital ad spend tailwinds better than most. The company has serious ad ambition and prior results that show success. Like the ad market, it too had a tough run in 2022, when it went too far in on the metaverse (before the rest of the world was ready). But META’s recent cost-cutting measures and advertising machine [are clearly working](. It is by far the largest social media company globally, touting 3.27 billion daily active users across its owned apps. The company has benefitted of late from increased ad spending from [Chinese e-commerce]( and gaming companies targeting users here in the U.S. (hello, Temu). In the second quarter, Meta’s ad revenue grew by 22% year over year, besting [Google's (GOOGL)]( 11% and Snap’s (SNAP) 16%. Earlier this month, META shares popped higher following beats across the board and stronger-than-expected guidance. Employee headcount continued to drop, boosting operating income 58% year over year and lifting operating margin to 38% (from 29% a year ago). The stock is up 49% year to date (and more than 187% over the last five years). SPONSORED AD [Expert Who Predicted the Biggest Financial Events of The Last 30 Years, Issues New WARNING:]( Eric Fry has called every major market-event of the last 30 years... Recommending 41 stocks – EACH one hitting 1,000%+ returns... But today, Eric releases his biggest WARNING of 2024. In short... [The world’s wealthiest investors (Jeff Bezos, Mark Zuckerberg, 48 members of Congress, and more) are about to exploit a massive “transfer of wealth” at the cost of your own personal savings](. The last time this happened... In the 2020 crash – the top 1% added $15 trillion to their net worth... Meanwhile, the middle class has suffered ever since... [But now – another major ‘transfer of wealth’ has just begun](. Today you have ONE final chance to follow alongside the wealthy, in what may be the [greatest investment moment of 2024](. [Click here]( AI Investments Pay Off META continues to invest heavily in AI, with capital expenditure spend slated between $37 billion to $40 billion for the remainder of the year. This includes hundreds of thousands of [Nvidia (NVDA) H100]( graphics cards and equivalent GPUs. AI is critical beyond its AI assistant. Facebook and Instagram leverage AI to improve the quality of recommendations and keep users hooked on its platforms... The more eyeballs on screens and the more effectively the company can really KNOW these eyeballs, the better the ad connection with brands. Zuckerberg noted on the company's earnings call: "In the coming years, AI will be able to generate creative for advertisers as well — and will also be able to personalize it as people see it. Over the long term, advertisers will basically just be able to tell us a business objective and a budget, and we're going to go do the rest for them." Web data shows Instagram in particular (orange line) continues to outperform and keep users engaged: You can also see on the ad spend chart below just how big a piece of the advertising pie META commands and is projected to command. Bottom line: META's strong stock performance appears more than justified. If the company can deliver the type of advertising model Zuckerberg describes, the ad spend projection is likely to tilt even more into META's favor. Until next time, [Andy Swan's signature] [Andy Swan's signature] Andy Swan Founder, LikeFolio [Find Out Where Zuckerberg’s Trillions Are Headed Now]( Mark Zuckerberg, Elon Musk, and Sam Altman of OpenAI are in an epic “winner takes all battle” for Artificial General Intelligence (AGI). These heavy hitters are potentially funneling more than $7 trillion toward this goal as we speak... in fact, Musk believes a world where AI surpasses human intelligence could become a reality within as little as 24 months. Fortunately, a [small window of opportunity]( just opened up, allowing you to get ahead of this massive shift. Find out how you can prepare your portfolio now in an urgent Road to AGI Summit tomorrow. [Get the details here](. Discover More Free Insights from Derby City Daily Here's what you may have missed from Derby City Daily this week... ✓ [Massive Executive Shakeup: Where SBUX and CMG Go from Here]( ✓ [ONON’s Profit Potential Just Kicked into High Gear]( ✓ [Meet the Disruptors Coming for Google Chrome’s Throne]( © 2024 TradeSmith, LLC t/a Derby City Insights. All Rights Reserved. 1125 N. Charles Street, Baltimore, MD 21201 To unsubscribe or change your email preferences, please [click here](. [Terms of Use]( | [Privacy Policy](