February 2nd, 2021 | 07:20 CET
Facebook, AdTiger, ProSiebenSat.1 - anything but boring, don't miss this opportunity!
According to Statista, the market for digital advertising will increase globally to USD 526 billion by 2024. In 2018, the market volume was still at USD 283 billion, representing an annual growth rate of almost 12%. The continuing shift of advertising budgets to digital is irreversible. We present three exciting investment stories from the advertising sector. Not to be missed.
time to read: 2 minutes
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Author:
Carsten Mainitz
ISIN:
KYG009701064 , US30303M1027 , DE000PSM7770
Table of contents:
Author
Carsten Mainitz
The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.
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FACEBOOK INC - Analysts expect further rising share prices
From today's perspective, it may sound strange. But when Facebook went public in May 2012, it was not clear whether the Company would convert the large number of users into cash. The IPO at a share price of USD 38 and a market capitalization of USD 104 billion priced in a lot of fantasy. The skeptics prevailed for a short time and the share price dropped by half in the following months.
Today, at prices of around USD 260 and a market capitalization of more than USD 700 billion, the answer is clear: Facebook is a success story. Every day, 1.84 billion people use the service. The number of users who use the service only once a month is as high as 3.3 billion. Even if some dark clouds are gathering from the side of data protectionists or regulatory authorities, one thing is sure: companies that want to advertise online cannot get around Facebook.
The latest figures cement the profitability of the business model. The Group generated revenues of around USD 28 billion in Q4, up a third year-over-year. Earnings per share increased by a solid half to USD 3.88. Numerous major investment banks have updated their price targets for the share in recent days, the majority of which are between USD 350 and USD 360. These price targets correspond to a price potential of almost 40%.
ADTIGER CORPORATIONS LTD - Use consolidation to enter the market
AdTiger's stock combines several attractive investment criteria. Summarized in a few words, "China plus scalable online business model at a bargain price."
The Company operates a Chinese online advertising platform and specializes in Chinese advertisers that operate globally. AdTiger manages its customers' advertising internationally and does so very effectively. It does this by networking with high-reach social media platforms and apps, including Facebook, Snapchat, Google, Twitter, Yahoo and TikTok. The Company also uses its own Big Data software to respond to user behavior in real-time, allowing it to optimize ad slots, ad times and generate maximum ad reach.
AdTiger's stock has yet to be kissed awake, which opens up the opportunity for forward-looking investors to still participate in the profitable, debt-free Company at a bargain valuation level of around EUR 80 million. The expertise in the vast market for Chinese companies would already be sufficient as a sole purchase argument. The growth potential of intelligent real-time analysis software in combination with its wide distribution is an unbeatable argument. This aspect should lead to a revaluation of the share in the future.
PROSIEBENSAT.1 MEDIA SE - preliminary figures for 2020 significantly above forecasts
ProSiebenSat.1 is one of the most diversified media companies in Europe. The Group makes its money from advertising in its television business, including 15 free and pay-TV stations and a reach of 45 million households in Germany, Austria and Switzerland.
At the end of January, the Group announced its preliminary figures for the past fiscal year. With EUR 4.04 billion revenues, the Munich-based Company exceeded its target range of EUR 3.85 billion to EUR 3.95 billion. The operating performance was even more festive. With adjusted EBITDA of around EUR 700 million, the guidance of EUR 600 million to EUR 650 million was significantly exceeded. The basis for the better-than-expected business development was a strong final quarter with an upturn in the advertising business.
The share price has already rewarded the exemplary figures. The shares are trading around EUR 15 and have gained almost 60% in the last three months. Analysts are divided on the prospects of the MDAX-listed Group. While Deutsche Bank analysts believe the share is exhausted, Warburg and J.P. Morgan see further potential at EUR 19 and EUR 21, respectively.
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