Are These The Best Advertising Stocks For Your February 2022 Portfolio?
As we begin another trading month, investors may be looking towards the tech industry in the stock market today. For the most part, some would argue that advertising stocks could make for an interesting play on the sector now. After all, in an age where digital interactions between companies and consumers are greater than before, advertising is crucial. This is increasingly becoming the case for businesses and organizations of all sizes across the board. As such, it would not surprise me to see investors looking at the top advertising stocks in the stock market now.
For one thing, some of the biggest names in the business continue to go from strength to strength. Namely, this would be me referring to Alphabet (NASDAQ: GOOGL) subsidiary Google. The company’s online advertising business would be its flagship division now. In its third-quarter earnings report, Google raked in a total advertising revenue of $54.13 billion, marking a massive 43% year-over-year increase. Because of this, GOOGL stock could be gaining attention ahead of its upcoming earnings call this week. Likewise, other advertisers such as PubMatic (NASDAQ: PUBM) are also posting strong financials. In its previous quarterly earnings report, the company’s earnings per share more than doubled year-over-year. Overall, with this apparent momentum in the advertising space, could one of these firms be worth noting now?
4 Top Advertising Stocks To Buy [Or Sell] Today
- Semrush Holdings Inc. (NYSE: SEMR)
- Criteo (NASDAQ: CRTO)
- The Trade Desk Inc. (NASDAQ: TTD)
- Roku Inc. (NASDAQ: ROKU)
First on this list, we have Semrush, a leading advertising company that provides its online visibility management Service-as-a-Software platform. The platform enables companies globally to identify and reach the right audience in the right context and through the right channels. In essence, Semrush allows its customers to understand trends and approach them with proper insights, to improve their websites and social media pages. The company also helps its users distribute highly relevant content to their customers across a variety of digital channels.
On January 19, 2022, the company announced the acquisition of Marketing and Search Engine Optimization (SEO) trading platform Backlinko. With more than 500,000 visits a month, Backlinko.com is widely acknowledged as one of the most respected resources for training, strategies, and advice for today’s digital marketers. “We are thrilled to be joining Semrush. Digital marketing and SEO is more relevant and crucial to business success than ever before,” said Brian Dean, founder of Backlinko. “Semrush is one of the first places digital marketers turn to when starting their marketing journey, so our joint efforts and combined learning library presents millions of marketers with the opportunity to learn from the best in the industry.” With that being said, will you be on the lookout for SEMR stock?
Criteo is an advertising company that provides online display advertisements. The company continues to power the world’s marketers and media owners with trusted and impactful advertising. By powering trusted and impactful advertising, Criteo brings richer experiences to every consumer while supporting a fair and open internet. It has over 2,700 team members and partners with over 22,000 marketers and thousands of media owners around the globe.
Last month, the company announced that it has acquired IPONWEB, a market-leading AdTech company with world-class media trading capabilities. With this acquisition, Criteo accelerates its Commerce Media Platform vision to offer better control to its enterprise marketers and their agency partners. It does this by leveraging IPONWEB’s well-established DSP and SSP solutions. Also, this acquisition will expand media owner monetization opportunities and provide critical services for first-party data management across the ecosystem. Criteo expects to close this transaction by the end of the first quarter of 2022. The company is also set to announce its fourth-quarter and fiscal year 2021 financials on February 9, 2022. Ahead of its financials, is CRTO stock worth investing in today? Given this piece of news, is CRTO stock a top advertising stock to consider investing in?
The Trade Desk
Next, we have Trade Desk, a global technology company that markets a software platform used by digital ad buyers to purchase data-driven digital advertising campaigns across various formats. Customers can optimize more expressive data-driven digital advertising campaigns across these ad formats. This includes display, video, audio, native, and social on a multitude of devices.
In November, the company announced that it is expanding its partnership with NBCUniversal. As part of this announcement, the company will add NBCU’s Peacock service to its industry-leading CTV platform. With that, the world’s leading advertisers will have access to premium Peacock’s video-on-demand inventory on The Trade Desk. This would include channels like NBC Sports, NBC, and Sky News among others. For these reasons, is TTD stock a buy right now?
Following that, we will be taking a look at Roku. Now, most would know Roku from its comprehensive end-to-end streaming offerings. The likes of which span from streaming hardware to Roku’s content hosting platform. In this respect, the company acts as a hub for several leading video streaming services. This includes but is not limited to Netflix (NASDAQ: NFLX), Amazon’s (NASDAQ: AMZN) Prime Video, and Apple’s (NASDAQ: AAPL) Apple TV+. Now, other than getting a cut of subscription fees from these channels, Roku also offers free content while running ads. This would be where its advertising business sets it apart from the competition.
Like most other names in the streaming space, ROKU stock surged throughout the pandemic. However, since purchasing the Advanced Video Advertising arm of Nielsen (NYSE: NLSN) last year, Roku’s advertising revenue continues to grow. In its previous fiscal quarter report, the company’s platform revenue, which includes ad revenue, soared by 101% year-over-year. At the same time, Roku’s streaming services also appear to be gaining traction among consumers. According to the company, data from the Hypothesis Group points towards Roku being the #1 streaming platform in Canada in terms of streaming hours. All in all, some would argue that all this alongside Roku actively expanding on its original content library could make for exciting times ahead for ROKU stock. Would you say the same?
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