Interactive media and services companies help users communicate and get information. These businesses not only produce software but also create content, such as video games or apps. Many interactive media companies operate digital marketplaces that let users buy virtual goods, such as an extra level in a contest or a new hairstyle for their avatars. Other businesses provide streaming services or sell advertising to companies that offer them. Since these companies have different services and products, you need to understand the pros and cons of each one before making an investment decision. If you are looking for the best interactive media & services stocks for 2022, keep reading to learn more about the pros and cons of investing in these stocks now.
ZoomInfo Technologies (ZI)
ZoomInfo helps companies increase sales, improve customer service, and hire new employees by creating a central database of information. It has three main product areas: ZoomInfo People, ZoomInfo Products, and ZoomInfo Marketing Technologies. People provides information on more than 350 million individuals, including contact information, education, skills, work experience, and certifications. Products include information on over 800 million products and services, including pricing, availability, reviews, and locations. Marketing Technologies analyzes big data to help companies improve lead generation, sales productivity, and marketing effectiveness. ZoomInfo has proved to be a high-quality investment. The company’s consistent financial performance and lack of long-term debt have earned it a Zacks Rank #1 (Strong Buy). ZoomInfo’s low-risk dividend strategy is appealing, as well. The company has increased its dividend every year since going public in 2000. ZoomInfo is an excellent long-term investment.
Zillow Group (ZG)
Zillow is an online real estate marketplace that lets users list, buy, and sell properties for a flat fee. The company also publishes neighborhood-level real estate data, including information about home values, which it updates daily. Zillow has expanded its services to include rental listings and mortgage advice. It also acquired Trulia, a competing real estate marketplace, in 2016. Zillow has a healthy financial outlook. The company’s rapid revenue growth, healthy gross margin, and low debt levels have earned it a Zacks Rank #2 (Buy). Zillow is expected to generate a strong earnings growth rate over the next few years. The company also offers an excellent dividend yield of 1.9% annually. Zillow is a solid long-term investment, but it may be risky for investors who prefer low-risk stocks.
Baidu is China’s largest internet search provider. The company offers internet advertising services, mobile apps, artificial intelligence, cloud computing, and digital content. Baidu’s products and services are primarily used in China. The company also has a small but growing presence in the US market. Baidu generates most of its revenue from online advertisements. The company’s digital marketing services platform (DMS) covers a variety of industries, including travel, healthcare, retail, and financial services. Baidu’s financial solid performance and low debt levels have earned it a Zacks Rank #3 (Hold). The company’s expected earnings growth rate is also low, but its dividend yield of 1.9% makes it a solid investment. Baidu is an excellent long-term investment, but its low growth potential makes it risky for investors who prefer low-risk stocks.
Google is an internet search and advertising company that offers various digital services, such as Gmail and YouTube. The company also owns several industry-leading artificial intelligence and machine learning technologies, including Google Cloud and Google Assistant. Google is one of the most profitable internet companies, with strong financial performance and low debt levels. The company’s net income has steadily increased since going public in 2004. Alphabet’s strong economic performance has earned it a Zacks Rank #1 (Strong Buy). The company’s expected earnings growth rate is also relatively high. Alphabet is a low-risk investment that offers an attractive dividend yield of 2.3%. Alphabet is an excellent long-term investment.
Interactive media and services stocks will likely perform well over the next decade. Many of these companies are leaders in their industry and offer various digital services. ZoomInfo, Zillow, Baidu, and Alphabet all offer solid financial performance and low debt levels. These companies have a history of consistent revenue growth and healthy profit margins. Although these stocks will likely perform well over the next ten years, they also present some risks. The financial performance of any company can be affected by outside factors, such as the economy or new technology. Investors should be aware of these stocks’ potential challenges before making an investment decision.