- STOCKS THAT ARE EXPECTED TO SKYROCKET FULL
- STOCKS THAT ARE EXPECTED TO SKYROCKET ANDROID
- STOCKS THAT ARE EXPECTED TO SKYROCKET FREE
However, Criteo will do just fine with or without this $380 million acquisition. As a Moscow-based business, Iponweb is subject to the myriad business sanctions that other countries are enforcing against Russia, so the deal will probably not move forward until the conflict ends - and the effects of the sanctions might linger long after that date. It's true that its pending purchase of real-time ad targeting expert Iponweb has been put on hold by Russia's invasion of Ukraine. The company recently changed up its business model, diversifying away from a stagnant ad retargeting service to tap into the promising markets of video advertising and AI-powered ad targeting.
STOCKS THAT ARE EXPECTED TO SKYROCKET FREE
The stock currently trades at the bargain-bin valuation of 10 times free cash flow, 8 times forward earnings, and 0.8 times trailing sales.Īnd if you call this a risky business, you and I have very different definitions of risk. It's kind of funny to see it being dragged down by the marketwide flight from risky stocks with lofty price tags and/or weak profits - because the Paris-based company isn't any of those things.Ĭriteo is firmly profitable with adjusted earnings of $136 million and $166 million in free cash flows last year. This company doesn't belong in the "risky stocks" categoryĪnders Bylund (Criteo): Online advertising veteran Criteo is trading 40% below last summer's multiyear peak. With a low valuation, share buybacks, and the prospect of improvements in ad targeting as the year progresses, Meta looks like a top candidate for a big bounce back in the latter part of 2022.
Based on the low valuation the stock is trading at, the market is pricing in almost no success on that front, so a win there would be a bonus.
STOCKS THAT ARE EXPECTED TO SKYROCKET ANDROID
(Also worth noting - Alphabet announced in February that it planned to make similar anti-tracking changes to the Android mobile operating system.)Īnd of course, there is also the possibility that the metaverse could live up to the promise that Meta CEO Mark Zuckerberg sees in it. While it may not be able to get back to the level of targeting precision it achieved prior to Apple's move to enhance users' data privacy, I'd expect improvement on that front over time. Facebook is still generating lots of cash, and the company is repurchasing stock at its current low valuation, which also lends some support to the stock price.Īdditionally, there are a lot of smart people at Meta working on better ad targeting and performance measurement. While the space may be getting competitive, that certainly leaves Meta room to grow. Research firm Zenith projects that overall social media advertising spending will grow at a mid-teens percentage rate annually between 20.
That seems to indicate that investors assume the core Facebook and Instagram platforms are in decline. In fact, when you incorporate that extra cash and strip out the metaverse spending, the stock multiple is closer to 10 to 11 times earnings. Meta also has around $48 billion in cash on its balance sheet and still generates high margins despite its less-than-stellar growth and rising metaverse outlays. That's a big drag on the bottom line.īut as Warren Buffett once said, "you pay a high price for a cheery consensus." With Meta's current valuation at just 15 times earnings, the market seems to have factored all the fear and pessimism around these issues into the stock price already. In 2021, Meta laid out $10.2 billion on its metaverse projects, and that spending accelerated throughout the year. (The Kremlin had already banned Facebook.)įurthermore, Meta is already spending heavily to prepare for a tech future that probably won't generate meaningful revenues for years: the metaverse. Oh, and Russia on March 14 banned Instagram within its borders, blocking 80 million users from the platform. Among its competitors, TikTok has come on particularly strong, going from zero to accounting for roughly 15% of social media engagement over the past few years. The user-tracking changes that Apple made to its iOS have dented Meta's ability to track people across the internet, which reduces Facebook's and Instagram's ad-targeting capabilities. To be sure, the social media giant is going through some struggles right now. After all, FAANG stocks aren't supposed to sink by 50%.
STOCKS THAT ARE EXPECTED TO SKYROCKET FULL
Buy this FAANG stock while it's down nearly 50%īilly Duberstein (Meta Platforms): In a market full of tales of shocking declines, perhaps none is more shocking than Meta Platforms' fall from grace after its fourth-quarter report.
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