The Nasdaq Composite has recently dropped over 10%, prompting concerns about a potential trade war and recession. This decline presents entry points for quality stocks, notably Meta Platforms and Alphabet, which dominate digital advertising. Despite a wavering economy potentially hurting short-term revenue, both companies show strong market positions. Meta, leveraging AI and its popular platforms like Facebook, Instagram, and Threads, is seeing rising user engagement. As Threads gains traction, its future monetization will significantly drive growth, making it a compelling long-term investment.
With fears of a trade war and a potential economic recession rising, the Nasdaq Composite has fallen into correction territory, retreating more than 10% from its mid-December high.
Meta has leaned into artificial intelligence (AI) with its Llama model, which helps lead to increased user engagement, with people spending more time on its platforms.
Meta is currently growing out the Threads audience, with 320 million monthly active users at year-end, growing their user base by about 1 million users a day.
Once Threads goes into its monetization phase, this should be a strong growth driver for Meta.
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