Meta Platforms emerges as the top adtech stock for the second half of 2024.

From Nasdaq: 2024-07-08 08:45:00

The stock market saw solid gains in the first half of 2024, with S&P 500 up over 14% and Nasdaq Composite up over 18%. Digital advertising was a top-performing sector, dominated by Meta Platforms (NASDAQ: META) and Alphabet (NASDAQ: GOOG). Meta Platforms boasts 3 billion monthly active users and $36.5 billion in revenue, with a 98% share from ad sales.

Alphabet, on the other hand, relies on Google Search for the majority of its revenue, generating $46.2 billion in Q1. YouTube ads contributed $8.1 billion, and Google display network ads brought in $7.4 billion, totaling $61.7 billion or 77% of quarterly revenue from advertising. Alphabet offers a more diverse revenue base compared to Meta.

Despite both companies being solid investments in the digital ad market, Meta Platforms takes the lead in value creation for shareholders with over 96% growth in free cash flow per share in the last two years, surpassing Alphabet’s 14% growth. This indicator is crucial for evaluating a company’s shareholder value. Meta Platforms emerges as the top adtech stock for the second half of 2024.

Investors considering Meta Platforms should note it wasn’t among The Motley Fool’s top 10 stock picks, which historically have yielded substantial returns. The Stock Advisor service provides guidance on building a successful portfolio, surpassing the S&P 500 return since 2002. Randi Zuckerberg and Suzanne Frey are board members of Meta Platforms and Alphabet, respectively, and The Motley Fool holds positions in both companies with a disclosure policy in place.



Read more at Nasdaq: Better Adtech Stock to buy in the Second Half of 2024: Meta Platforms vs. Alphabet