Meta Platforms (META) stock hit a record high in intraday trading on Thursday, driven by the company's strong advertising revenue. Notably, his PDD (PDD), the parent company of fast-growing e-commerce platform Temu, has emerged as one of Meta's top advertisers, with his It's costing a whopping $2 billion.
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Editor's note: This article was written by angel smith
video transcript
– In today's trading we needed to talk about the meta. Because the meta has hit an all-time high. And one of the headlines that has gotten attention, and we have to talk about it, is that Temu's parent company, PDD, reports that it dropped about 2 billion ads on Meta last year. That means it was Meta's top advertiser. The magazine reported, citing sources. By the way, Temu was also one of Google's top five advertisers in terms of spending last year. That's good news for both the tech giant and its advertising business. Of course, it remains to be seen whether these companies can really rely on China-based advertisers in 2024.
– Yeah. I mean, that's a big question. Wish regularly appears on our trending ticker page, another e-commerce retailer that significantly increased its spending on advertising a few years ago, but that spending has since declined far and away. . So, let's take a look at whether these companies' advertising spending is sustainable. However, despite this, there is clearly a tailwind in the meta at the moment. We've seen this dispersion as we've been discussing among the Magnificent Seven stocks over the past few days, but meta stocks are one of those stocks where sentiment remains bullish until something derails it. is.
– Yeah. I mean, just talking about today. So, certainly if you look at Alphabet and Meta, they're both up in today's trading. But if you look at the graph here a little bit, you'll see that Google's performance has been poor since the beginning of the year. This week, we spoke with Deepwater's Doug Clinton. They are shareholders, and he expressed concern that many are increasingly concerned about whether they are moving fast enough on AI. Meta has no need to worry, as its stock is up about 45% this year.
– Well, whether we're moving fast enough on AI or not, Alphabet and others rely heavily on that area, so ad sales will definitely help.
