The internet content industry caters to content creators as well as content consumers. Online content has exploded in recent years, and platforms of all kinds have experienced tremendous growth. However, there are also some headwinds that the industry faces. Among them is the growing attention of governments around the world on user privacy and data monetization regulations. As a result, it has become more and more difficult for content companies to sell user data. However, user data can be leveraged in multiple ways besides simply selling it.
Additionally, a growing demand for digital content is growing and is expected to continue the upward trajectory. Therefore, the pandemic-induced fall in advertising spend may be a temporary phenomenon. If you are looking for internet content stock market investing and want to find stocks in the content space, some big names like Alphabet could be considered.
Alphabet Is An Iconic And Dominant Player
Alphabet is the parent company of multiple Google subsidiaries as well as Google. Some giant brands like Google Search and YouTube come under Alphabet’s control. YouTube is one of the pre-eminent video platforms in the world. The penetration of smartphones and 4G internet throughout the developing world is boosting the prospects of platforms like YouTube. It is witnessing more users, as well as more content creators, come on board. Other companies to consider would be Brightcove, Baidu, and Spotify. The music streaming segment is also a big growth driver for the internet content industry. Content on the internet is only going to expand and grow. Therefore, finding businesses with a competitive edge and a strong ability to attract users would place investors in a good position. Finding the best internet content stocks would require some research and analysis.
Alphabet’s stock has grown from around $724 5 years ago to $2350 in May 2021. That is a growth of 3X or a CAGR of 24.5%. Over the past 12 months, the stock is up 70%. It currently trades at a P/E of 30 but has a market cap of over $1.5 trillion.