Reasons Why Meta Platforms Stock Rose Yesterday.

  Reasons Why Meta Platforms Stock Rose Yesterday. The digital advertising industry is booming.  

What happened

 Shares of Facebook's parent company Meta Platforms FB (NASDAQ) $317,87 +11,03 (+%3,59) rose 3,6% on Monday after media investment firm GroupM's growth forecast for the digital advertising market.

So what

GroupM's global head of business intelligence, Brian Wieser, announced that global ad spend, excluding political ads, will rise sharply to $766 billion in 2021. With this statement, the forecast was % 19,2 higher than the previous one. In fact, Wieser sees the industry growing 9,7% in 2022. Moreover, by 2025, GroupM predicts that the global advertising market will expand to $1 trillion.

Reasons Why Meta Platforms Stock Rose Yesterday.

"The ad industry is in a ridiculously healthy state right now," Weiser told Adweek. He added that the targeted 23% growth rate in 2021 is one of the strongest growth rates ever for the industry.” According to Wieser, many new online businesses have announced that they are focusing on increasing their sales.

Now what

GroupM's forecasts were even better for the digital segment of the advertising market. Wieser expects digital ad spending to increase 30,5% this year and 13,5% in 2022. In addition, GroupM estimates that digital advertising will make up about two-thirds of the overall advertising industry. This rate was around 60% in 2020. And Wieser assumes that Meta, along with other industry giants Alphabet and Amazon, can cover 90% of this digital ad spend. So, although Facebook has changed its name to Meta Platforms to achieve these ambitions, shareholders can take comfort in the knowledge that this business has a solid foundation.  

Source: The Motley Fool

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