From Nasdaq: 2025-01-17 13:29:00

Also, the first look at Disney’s ad-supported streaming numbers reveals promising growth in this sector. Amazon’s plans to expand into Google’s ad turf show the competitive landscape heating up. Meta’s changes to content moderation policies aim to address ongoing concerns. Paylocity and Gannett are two stocks worth keeping an eye on. Dave Meyer, head of real estate investing at BiggerPockets, discusses the state of real estate and key market trends in 2025 on The Motley Fool podcast.

In the financial market, the latest Fed minutes suggest a possible slowdown in interest rate cuts due to persistent inflation concerns. The December job report revealed stronger-than-expected job growth, leading to market uncertainty. The 10-year treasury yield spiked to 4.77%, the highest since 2023, indicating potential economic risks. Investors are cautious as the economy faces inflation pressures and uncertain Fed actions.

Despite positive economic indicators, market volatility persists as investors navigate uncertainty around interest rates and inflation. The strong December job report sparked concerns about the Fed’s future actions, leading to market sell-offs. The delicate balance between economic growth and inflation worries creates a challenging investing environment. Investors must remain vigilant amid changing market dynamics and Fed policies. Adobe reports online holiday spend reached 241 billion, up 8% from 2023. Mobile devices accounted for 54.5% of total spend. Buy now pay later saw a $18 billion increase. Ulta raised holiday quarter guidance after strong sales. Delta posted record revenue, with shares up 10%. United and Southwest earnings anticipation is high. Disney has announced that 157 million users worldwide have opted for ad-supported tiers across Disney plus, Hulu, and ESPN plus. Netflix has also seen growth in its ad-supported tier, reaching 70 million users globally. Streaming companies are adapting to consumer preferences for cheaper, ad-supported options.

Amazon has introduced a new retail ad service product in the US, allowing retailers to display ads on their sites. This move mirrors Google’s offerings to web publishers for ad tools. Amazon aims to strengthen its advertising business by providing customizable ad options and leveraging data for ad predictions.

With ad revenue reaching over $14 billion in the latest quarter, Amazon’s ad business has become a major player in the advertising space. Despite being their third best revenue stream, behind online stores and Cloud computing, the ad business shows potential for growth and could compete with the Cloud business in the future. Investors are optimistic about Amazon’s expansion into the advertising industry.

Amazon’s stock is still a strong buy, with opportunities in retail, Amazon web services, and advertising. CEO Mark Zuckerberg announced that Facebook and Instagram will replace fact checkers with community notes for moderation. Real estate market expert Dave Meyer predicts a transition from a recession to an expansion era in 2025, with increased sales volume and inventory. Investors should keep an eye on potential backlash from these changes. The real estate market is seeing a 50% drop in transactions since 2022, with prices expected to remain flat. Affordability is a major issue, impacting both supply and demand. Despite mortgage rates nearing 7%, a slow recovery is predicted, with rising inventory and transaction volumes. The Fed’s rate cuts may not significantly impact mortgage rates. Market sentiment has shifted from recession fears to inflation concerns, keeping mortgage rates high. Uncertainty around Trump’s economic policies will likely lead to continued high yields. Home prices are expected to rise this year, making now a good time to buy. Real estate offers benefits beyond just home values, making it a good hedge against inflation.

Coastal and legacy markets are seeing year-over-year price increases, surprising many who expected growth in Sunbelt states. Overbuilding in areas like Austin, Texas has led to a supply overhang. The influx of new units will continue through 2025, impacting pricing in Texas and Florida. Slow and steady markets in the Midwest and Northeast are expected to continue growing.

Real estate investing is a long game – focus on acquiring good assets in growing neighborhoods. Look beyond short-term fluctuations in property values, as real estate offers benefits like cash flow, tax advantages, and amortization. Don’t get hung up on market fluctuations – real estate provides stability and long-term growth potential. In real estate, even with flat property values, you can earn returns of 6-8%. Home prices in the US consistently rise long-term. Dave Meyer from BiggerPockets discusses real estate investing on Motley Fool Money. Paylocity (PCTY), a cloud-based HR software provider, is profitable and innovative with AI-driven solutions. Gannett (GCI) is transforming into a content business amid declining newspaper revenue, potentially offering value for investors. In a discussion on the challenges facing local newspapers, experts point to the internet as a primary problem, but also note that consolidation by companies like Gannett may contribute to the decline of the press. Despite the tough business environment, small town newspapers are valued by some, including Warren Buffett.

Listeners of the Motley Fool Money Radio show are encouraged to become members of Stock Advisor for exclusive content. The show features expert opinions from individuals like Suzanne Frey of Alphabet and John Mackey of Whole Foods Market. Board members include industry leaders like Randi Zuckerberg, former director of market development at Facebook.

Disclaimer: The opinions expressed in the article are those of the author and may not align with those of Nasdaq, Inc. Experts featured on the Motley Fool Money Radio show have positions in various stocks, including Amazon, Alphabet, and Walt Disney. The Motley Fool recommends companies like Adobe, Delta Air Lines, and Gannett. A disclosure policy is in place to ensure transparency.



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