Investing in Tech: Meta Platform and Netflix
Over the last decade, we’ve really leaned into technology. The Nasdaq Composite has been closely following two major US market indexes, indicating that some of the best growth stocks to hold onto have emerged from the tech sector during this time. Key players like Meta Platform and Netflix have generated significant profits. What’s intriguing is that both of these companies seem poised to continue outperforming the market well into 2036. Let’s explore why they’re worth considering for investment.
1. Meta Platform
Finding a company with such a robust user ecosystem as Meta Platform is quite a task. With about 3.58 billion daily active users across its platforms, it’s clear they have a strong hold. The majority of the company’s revenue comes from advertising, and that’s not expected to change anytime soon—at least for the next decade. The deep network effects across their platforms make it tough for competitors to really draw users away. Plus, engagement remains high, largely thanks to AI-driven algorithms that enhance user experience.
Meta is equipping advertisers with various AI tools, simplifying everything from audience targeting to ad performance analytics. This more engaged user base, combined with increasingly effective advertising techniques, should pave the way for steady revenue and profit growth over the next ten years. There’s also the potential for Meta to explore additional growth avenues, such as AI-based commerce and paid subscriptions. It seems they’re set to ride the AI wave, which bodes well for their market position ahead.
2. Netflix
Netflix has undergone quite a transformation in the last ten years, but one thing remains unchanged: their ambition to replace traditional cable. They’ve made strides, though there’s still a journey ahead. Recent data shows that streaming made up about 47% of TV viewing time in the U.S. back in January, while many other markets remain less saturated. This creates a large global opportunity for Netflix, especially with its ad-supported tier that’s currently seeing rapid growth in ad sales.
Can Netflix maintain its edge in streaming despite increased competition? Absolutely. The brand’s strong reputation and adept content strategy are likely to keep attracting viewers, enhancing engagement with current subscribers. Moreover, Netflix is branching into new markets and is exploring long-form video podcasts—this could be a cost-effective way to engage audiences without the hefty budgets of original content. They’re even dipping their toes into sports streaming, which could bring a fresh wave of interest.
With these factors in mind, my belief is that Netflix hasn’t quite reached its peak yet, and its outlook through 2036 appears promising.
