Digital Ad Spend SNAPs Back: 3 Big Winners

See which rising stars are leading a digital ad comeback – and what's driving these outsized gains... [Derby City Daily logo]( [Derby City Daily logo]( November 1, 2024 [Digital Ad Spend SNAPs Back: 3 Big Winners]( By Andy Swan Digital ads are back, baby. We’ve been [pounding the table]( on a digital advertising resurgence all year long – and that data-driven persistence is paying off. Two rising digital stars led the market this week on the back of solid earnings reports, boasting impressive growth from digital ad dollars. Take a look at this week’s ad spend winners – and see if you notice a trend among the biggest gainers... Snap (SNAP): +14% Snap’s (SNAP) better-than-expected earnings report sparked a 14%-plus surge in its stock, driven by a strong quarterly performance and gains in advertising. [chart]( Source: TradingView The company posted adjusted earnings of 8 cents per share on $1.37 billion in revenue, beating expectations and marking a 15% revenue jump year-over-year. With improved AI-driven ad targeting, Snap attracted more marketers to its social media platform, boosting its global average revenue per user to $3.10 and increasing daily active users to 443 million. SPONSORED AD [REPLAY: Louis Navellier’s Shocking Election Interview]( [image]( If you missed the Day-After Summit… [This may be your last chance to watch the replay]( Reddit (RDDT): +41% 🚀 Rising social media star Reddit (RDDT) far exceeded expectations on its third-quarter report, catapulting its stock an eye-popping 41% in premarket trading on Tuesday. [chart]( Source: TradingView The company raked in $348.4 million in revenue, surpassing estimates of $313.6 million. It also turned profitable for the first time [since its IPO]( posting 16 cents per share against a projected loss of 7 cents. Advertising fueled this growth, generating $315.1 million, while [data licensing deals with AI firms]( contributed an additional $33 million. Though daily active users reached 97.2 million — slightly below estimates — Reddit saw substantial 47% year-over-year user growth. Alphabet (GOOGL): +5% Google’s (GOOGL) advertising revenue came in at $65.85 billion for the third quarter, closely aligning with market expectations. [chart]( Source: TradingView The 10.4% year-over-year increase reflects solid performance but a slower growth rate compared to some prior quarters. [Search ads]( contributed the bulk of this revenue, bringing in $49.4 billion, up 12.3% from last year, supported by AI enhancements that helped improve ad relevance and user targeting. Meanwhile, YouTube ads reached $8.92 billion, slightly above forecasts, indicating resilience, despite competition from platforms [like TikTok]( and [Netflix (NFLX)](. SPONSORED AD [“Apple Intelligence Is Finally Here — But Not in the Way You’d Expect!”]( [image]( Apple’s latest AI breakthrough, Apple Intelligence, just launched. While it didn’t debut with the iPhone 16, it’s about to transform the entire ecosystem. Don’t just watch Apple stock; the real winners could be their top suppliers. [See which stocks could soar.]( Do You Notice a Theme? The up-and-comers have much more room for gains – and they are finally catching up to the big dogs. But luckily for all involved, the rising ad tide is lifting all boats, albeit at different levels. We already saw some moves to the upside for other ad-adjacent names in our portfolios this week, aside from SNAP – including a 3.5% move higher from our brand-new MegaTrends pick (issued earlier this week). Bottom line: As [election-related]( spending and [holiday]( ad demand rise, companies with improving ad experiences, like the one featured in our latest [MegaTrends]( buy alert, and companies with [improving, shoppable platforms]( are strongly positioned for outsized growth. MegaTrends members received our full breakdown of the next digital ad winners in their Video Bulletin yesterday. If you’re not yet a member, you can [go here now]( to learn how to join today for immediate access to that members-only video report, the new buy alert I mentioned (there’s still time to get in), our model portfolio of 24 open recommendations, and [much more](. Until next time, [Andy Swan's signature] [Andy Swan's signature] Andy Swan Founder, LikeFolio Discover More Free Insights from Derby City Daily Here’s what you may have missed from Derby City Daily this week… ✓ [The No. 1 Buy Now, Pay Later Stock for the Holiday Spending Rush]( ✓ [First Amazon, Now Chewy – Walmart’s Next Market Share Steal]( ✓ [3 Sectors Ready to Rally This Election – No Matter Who Wins]( © 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](