Meta platforms could take a huge opportunity to take advantage of its AI technology in consumer products.
Netflix has a promising future as it increases from advertising and expand to live broadcast.
10 shares we like better than Meta platforms ›
Technology is historically where innovations and growth are taking place in the economy, so it is a promising sector to look for long -term winners. Despite the hard 2022 Nasdaq Composite has doubled in the last five years. It shows the value of the purchase and storage of great companies, instead of selling and leaving.
If you are looking for quality growth stocks to safely increase your money on a long -distance journey, there are two technology companies that you can hardly go wrong with.
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Meta platforms(Nasdaq: Meta) Over the past few years, there has been one of the best beneficiaries of artificial intelligence (AI) (AI). With more than 3.4 billion people every day, with their social media platforms, Meta will be extremely useful over the next decade, as they multiply people’s lives.
Meta integrates deeply into its ad business, which leads to almost all of the company’s $ 178 billion revenue. AI -powered advertising leads to more relevant ads, greater conversions and greater consumer involvement, which ultimately creates a positive return on advertisers. In the second quarter, the company’s income increased 22% per year, which was due to higher ads and the average price of AD price.
Meta Ai was the main engine of the company’s family involvement. This AI drive assistant has more than 1 billion active users. Meta AI helps create more important product recommendations and information to consumers, making it a valuable asset by increasing AD revenue.
When it comes to the user, Meta shows great potential for smart glasses. Her Ray-Ban Ai glasses were a hit, and Meta is about to start new sports glasses in collaboration with Oakley to increase growth.
Ai glasses can one day change phones as technology continues to improve. As noted by CEO Mark Zuckerberg on a company’s profit call, these products can become the main way people use over time. If this happens, it would be useful for platforms to have one of the hottest consumer products in the next 10 years.
Meta would not be able to take advantage of these opportunities without much cash resources. Due to the profitable ads, the business has helped to earn $ 50 billion in free cash flows in the last four quarters, which finances huge investments in data centers and AI. Meta is one of the few consumer companies currently reaching billions of AI technology, making it a convincing investment.
Netflix(Nasdaq: NFLX) Over the past decade, the dominant entertainment broadcast service has grown, which has created huge assets to shareholders. But it is not done. When it expands to advertising and other content, such as direct sports, the shares have real potential and continue to climb for the coming years.
Netflix has recently completed the installation of its patented Ad-Tech platform. The importance is that it reduces the dependence on third -party technology and gives the company the opportunity to serve large advertisers full of throttle.
It already shows great potential. AD AD’s income is expected to be increased this year, showing the high demand for advertising supported subscription plans. This gives Netflix a strong position to continue to grow its already huge subscriber base.
In recent years, the broadcast has become much more competitive, but Netflix continues to grow higher than average growth. In the last quarters, revenue has increased by about 16% per year. Although advertising income is not partially disclosed because it is still a small part of the business, Netflix’s growing content library and access to direct sports broadcast could turn a platform into a digital entertainment juggernaut over the next decade.
The management is interested in implementing sports transactions in which it earns a healthy profit to shareholders. So far, direct events make up a small part of the total content costs, but the management has indicated that these are high value involves. Sports broadcast has greatly influenced the conversion and maintenance of subscribers.
The growth of advertising and sports broadcasts will turn Netflix into a more valuable business over the next decade. Over the next few years, analysts hope that earnings will increase by 23%with an annual indicator, which should give the shareholder market a return.
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John Ballard has no position in any of the above shares. Motley fool is positions and recommend meta platforms and Netflix. The Motley fool has a disclosure policy.
2 technology promotions you can buy and hold for the next decade
