Key Points The Invesco QQQ Trust provides much more concentration than an S&P 500 ETF. In the last decade, this ETF has produced a phenomenal 19% annualized gain. Investors have some levers they can pull to boost their potential returns. 10 stocks we like better than Invesco QQQ Trust › Investors don't always need to select individual stocks in order to take advantage of the market's compounding magic. This is where exchange-traded funds (ETFs) come into the picture. There are thousands of these i ...

Meanwhile, Oracle is popping today. Another big mover after Tik Tok made major progress to keep US operations going, signing a deal to spin off that unit. And as this new entity now prepares to face off with existing social media giants in the US, how will it fair? Oracle shares, by the way, are up nearly 8%. Julia Borston has more. And Julia, I think Instagram has come a long way this year. The algorithm is much, much better. The competition is a little starker than it used to be. >> Yeah, reals. Also, You ...

Key Takeaways TTD is positioning OpenPath to reshape digital ad buying with direct, transparent connections to publishers.OpenPath links directly into trusted auctions, cutting duplication and improving price discovery.TTD says usage has surged, with Hearst seeing higher fill rates and a 23% revenue increase.The Trade Desk, Inc. (TTD) is positioning OpenPath as a transformative force in the digital advertising supply chain, reinforcing its long-standing commitment to transparency, efficiency and advertiser- ...

Nvidia and Meta Platforms are still safe buys in this frothy market.Over the past seven years, the market capitalizations of several top tech companies soared past the $1 trillion mark. Those gains were largely driven by the secular expansion of the cloud, artificial intelligence (AI), digital advertising, and chipmaking markets.Two of those high-flying trillion-dollar stocks were Nvidia (NVDA +0.99%) and Meta Platforms (META +1.49%). Investors might be reluctant to invest in these two stocks after their ga ...

Core Insights - Reddit (RDDT) and Meta Platforms (META) are prominent players in the digital advertising space, with RDDT emerging as a community-driven platform and META dominating through established platforms like Facebook and Instagram [1][2] Digital Advertising Market Overview - The global digital advertising market was valued at $488.4 million in 2024 and is projected to reach $1,164.25 million by 2030, with a CAGR of 15.4% from 2025 to 2030, benefiting both Reddit and META [2] Reddit (RDDT) Performance - Reddit is experiencing strong user engagement, with a 20% year-over-year increase in daily active users (116 million) and weekly active users (444 million) [5] - Advertising revenues for Reddit surged 74% year over year to $549 million in Q3 2025, driven by expanding advertiser relationships and a diversified customer base [4][12] - The company is enhancing its advertising tools, including Dynamic Product Ads and Reddit Pixel, which are contributing to increased advertiser adoption [3] Meta Platforms (META) Performance - Meta's advertising revenues increased by 25.6% year over year to $50.08 billion in Q3 2025, accounting for 97.7% of total revenues [8][12] - AI integration across platforms like Facebook and Instagram is driving user engagement, with a 5% increase in time spent on Facebook and a 30% increase on Threads [9] - Meta is leveraging its vast user data to enhance AI-powered creative tools, which are now available in over 200 countries [10] Stock Performance and Valuation - Over the past six months, Reddit's shares have surged 73.1%, while Meta's shares have declined by 7.8% [13] - RDDT shares are currently trading at a forward Price/Sales ratio of 14.14X, compared to META's 7.03X, indicating that both stocks are considered overvalued [16] - The Zacks Consensus Estimate for RDDT's 2025 earnings is $2.35 per share, reflecting a 170.57% year-over-year increase, while META's estimate is $23.43 per share, indicating a 1.80% decline [18] Conclusion - Reddit is positioned for greater upside potential due to rapid revenue growth and an expanding advertiser base, while META faces challenges in monetizing its AI investments amid stiff competition [21][22]

Investors should no longer ignore the ongoing AI boom.There hasn't been a more notable trend in markets and the economy in recent years than the artificial intelligence (AI) craze. This technology is being seen as a game changer that could fundamentally alter society, with huge gains in productivity that will lead to incredible economic growth. Businesses are investing hundreds of billions of dollars to be leaders in the space, and governments are supporting this activity.Investors should always be looking ...

Summary of Q3'25 Earnings Call for US Internet & Interactive Entertainment Companies Industry Overview - The earnings season for US Internet & Interactive Entertainment companies was marked by volatility in stock price reactions, driven by emerging themes in the market [3][4][5]. Key Themes and Insights 1. **AI Investment Trends** - There is a significant increase in AI investments from major players like Amazon (AMZN), Google (GOOGL), and Meta (META), with capital expenditures (capex) rising [3][18]. - The demand for AI workloads is increasing, leading to accelerated revenue growth for public hyperscalers [3][37]. - Investor discussions are focused on the rate of change in investments and the return on spend, particularly for Alphabet and Amazon, while Meta's visibility into returns remains debated [3][18]. 2. **Digital Consumer Behavior** - There is a mixed picture regarding consumer spending, with lower-income households facing downward pressure on discretionary purchases [3][4]. - Brand advertising has shown volatility, particularly among large advertisers in sectors like auto and retail, which could impact the broader digital economy [3][4]. 3. **Growth-Oriented Investments** - Companies are prioritizing long-term growth opportunities related to AI over short-term margins, which requires more proof points to boost investor confidence [4][18]. Company-Specific Insights 1. **Amazon (AMZN)** - AWS revenue growth was approximately 20%, alleviating some bearish concerns regarding its competitive positioning in AI and non-AI workloads [5][37]. - The upcoming AWS re:Invent conference is anticipated to provide further insights into AI positioning and capacity easing [5]. 2. **Meta Platforms (META)** - The deployment of AI has led to better-than-expected revenue growth, but elevated investment levels and questions about long-term monetization opportunities are weighing on investor sentiment [8][18]. 3. **Uber (UBER)** - Demand across mobility and delivery sectors remained strong, with solid bookings trends and positive forward commentary [8][62]. - Investors are focused on the impact of medium to long-term investments on margins and the evolution of the autonomous vehicle landscape [8][62]. 4. **Google (GOOGL)** - GOOGL reported healthy topline growth across all major segments, with positive trends in monetizing AI offerings [8][37]. - The company raised its FY25 capex guidance to $91-93 billion, indicating a commitment to long-term AI opportunities [18]. 5. **eCommerce Trends** - eCommerce results were generally positive, with companies like Amazon and eBay highlighting AI initiatives to enhance customer experience [29]. - Despite a sluggish consumer spending environment, companies demonstrated resilient performance and market share gains [29]. Risks and Considerations - The competitive intensity around AI foundational models is a key risk factor, with ongoing monitoring of spending rates and monetization potential [3][18]. - Investors are concerned about the sustainability of growth in consumer spending, particularly as the holiday season approaches [7][51]. - The online travel sector is facing challenges with more difficult comparisons in Q4, despite a solid travel environment in Q3 [50][51]. Conclusion - The Q3'25 earnings call highlighted a complex landscape for US Internet & Interactive Entertainment companies, with significant focus on AI investments, consumer behavior, and company-specific growth strategies. Investors are advised to remain vigilant regarding macroeconomic conditions and competitive dynamics as they assess future opportunities and risks in the sector [3][4][5][18].

Core Insights - Reddit (RDDT) and Snap (SNAP) are prominent social media platforms leveraging user engagement for digital advertising revenue [1][2] - The global digital advertising market is projected to grow from $488.4 million in 2024 to $1,164.25 million by 2030, with a CAGR of 15.4% from 2025 to 2030, benefiting both companies [2] Summary of Reddit (RDDT) - Reddit is experiencing strong user engagement, with increases in daily and weekly active users and Average Revenue Per User (ARPU) [3] - In Q3 2025, Reddit's advertising revenues surged 74% year-over-year to $549 million, driven by a 75% increase in active advertisers [4] - ARPU grew 41% year-over-year to $5.04 in Q3 2025, indicating effective monetization strategies [5] - Reddit Answers feature has gained popularity, with over 75 million weekly searches, enhancing user engagement and expanding reach to multiple languages [6] - The earnings estimate for Reddit in 2025 has risen by 25.6%, indicating strong growth potential [10][20] Summary of Snap (SNAP) - Snap is benefiting from improved advertising demand, with Q3 2025 advertising revenues rising 5% year-over-year to $1.32 billion, primarily from Direct Response advertising [7] - Snapchat has over 477 million daily active users, an 8% increase year-over-year, and 943 million monthly active users, a 7% increase year-over-year [8] - AR engagement remains robust, with over 8 billion daily uses of AR lenses and 350 million daily active users engaging with AR experiences [9] - Despite growth in user engagement and AR features, Snap faces challenges with weak brand advertising revenues and increased competition [13][21] Performance and Valuation Comparison - Year-to-date, Reddit shares have gained 20.1%, outperforming Snap, which has declined by 32.2% [12] - Reddit shares are currently trading at a forward Price/Sales ratio of 13.4X, significantly higher than Snap's 1.92X, indicating overvaluation for both [16] - The Zacks Consensus Estimate for Reddit's 2025 earnings is $2.35 per share, a 170.57% year-over-year increase, while Snap's estimate is 25 cents per share, reflecting a 13.79% decline [20] Conclusion - Reddit is positioned for greater upside potential due to its expanding advertising business and improved user experience, while Snap continues to struggle with brand advertising and competition [21][22]

Financial Performance - Pinterest's EPS missed expectations, leading to a weak Q4 revenue outlook [1] - Shares are down over 20%, pacing for the worst day since May 2022 [1] Market Trends & Industry Dynamics - Pinterest cites macro headwinds and moderating ad spend in the US and Canada [2] - Larger US retailers are dealing with tariff-related issues, impacting the home furnishing category [2] - RBC indicates weakness in Pinterest's digital ads universe, reinforcing lack of customer diversity and higher macro sensitivity [3] Analyst Ratings & Perspectives - 81% of analysts still have an outperform or buy rating on Pinterest [2] - JP Morgan remains overweight on the stock, citing user growth, deepening engagement, and overall monetization potential [3] - JP Morgan notes Pinterest's exposure to big retailers may keep shares rangebound near term [3]

Core Insights - Pinterest's shares fell significantly after the company missed profit expectations and provided weak guidance for the holiday quarter [1][5] - The company reported third-quarter adjusted earnings per share of $0.38, which was three cents below analyst expectations, while revenue increased by 17% to $1.05 billion, meeting forecasts [1][2] Financial Performance - For the current quarter, Pinterest anticipates revenue between $1.31 billion and $1.34 billion, slightly below the $1.34 billion expected by analysts [2] - In the U.S. and Canada, revenue grew by 9% to $786 million, with average revenue per user (ARPU) increasing by 5% to $7.64, both figures falling short of analyst estimates [3] User Metrics - Pinterest achieved a record of 600 million monthly active users, indicating strong user growth despite the challenges in monetization [3][5] - Global ARPU was reported at $1.78, which was slightly below expectations, highlighting difficulties in monetizing the expanding user base [3] Market Context - The results reflect broader challenges faced by social media platforms as digital ad spending slows in North America, impacting revenue growth [2] - Compared to Pinterest, shares of competitors Snap and Meta Platforms experienced more muted reactions in early trading following the news [2]