Alphabet and Meta Platforms are strong in digital advertising, with growth potential.

From Nasdaq: 2024-08-12 06:37:00

The S&P 500 and Nasdaq have been performing well in 2023, thanks to the AI boom and the Magnificent Seven stocks. However, some investors are wary of their high valuations.

Alphabet (GOOGL) and Meta Platforms (META) are undeniably dominant in digital advertising, with both companies boasting billions of daily active users. Their strong network effects and data collection abilities make them immune to competition.

Advertisers love Alphabet and Meta, as they generate 55% of global digital ad revenue. With solid financial performances and strong balance sheets, both companies are poised for continued growth and investment in AI.

Despite their dominance, Alphabet and Meta are trading at reasonable valuations. With forward P/E ratios of 21.3 and 23.7 respectively, these stocks are seen as attractive buying opportunities.

Investors can consider Stock Advisor’s top 10 stock picks, which exclude Alphabet. However, Stock Advisor has historically outperformed the S&P 500, providing valuable insights and recommendations for investors.



Read more at Nasdaq: Are These the 2 Best “Magnificent Seven” Stocks to Buy Right Now?