Market Update on Major Advertising Companies
Alphabet Inc. (NASDAQ: GOOG, GOOGL) reported that $74.2 billion of its $102.3 billion total revenue for Q3 2023 came from advertising, highlighting its resilience following a court case earlier this year that allowed it to maintain operations without significant disruption. Meta Platforms (NASDAQ: META) derived nearly all of its $51.2 billion revenue in the same quarter from ads, demonstrating strong performance despite recent investor concerns over its planned data center spending.
The Trade Desk (NASDAQ: TTD) experienced 18% growth in Q3 2023, despite facing challenges such as a poorly received AI-powered platform launch. Its stock price has dropped by over 65% this year, now trading at less than 20 times next year’s earnings, presenting potential investment opportunities as the market anticipates a recovery by 2026. In comparison, Meta is trading at 22 times 2026 earnings, while Alphabet maintains a premium price due to its successful AI integrations.
