Are you looking for the best interactive media and services stocks to invest in? These stocks have been among the worst performing members of the S&P 500 during recent stock market downturns. However, they also outperformed during bull markets. This is because these companies tend to be quite recession-proof. As people reduce spending, they are likely to spend more time with friends and family instead of going out or shopping for new clothes. Whether you want to keep in touch with your friends online, play games online, manage your appearance digitally, or stream music and videos online, there are plenty of media stocks and interactive services that can satisfy your cravings. Here are ten interactive media and services stocks that we believe will do well over the next five years and could be suitable long-term investments.
ZoomInfo Technologies (ZI)
ZoomInfo is an interactive media and services company serving businesses. The company uses artificial intelligence to organize, collect and distribute information, both structured (like data) and unstructured (like content). ZoomInfo partners with its customers to identify, manage and organize data and content relevant to their unique business needs. It then makes this information available in an intuitive and easy to use interface. ZoomInfo has a low-capital business model. This means it doesn’t have high fixed costs, which makes it difficult to be profitable in a recession. As a result, ZoomInfo is less vulnerable to online competition than other media stocks and interactive services. Additionally, ZoomInfo focuses on serving business customers, not consumers. As a result, corporate clients are less likely to cut spending during tough times.
Zillow Group (ZG)
Zillow Group is an interactive media and services company that publishes real estate and financial information. The company collects and analyzes data to help people buy, sell and rent real estate. Zillow Group brands include Zillow, Trulia and StreetEasy. Zillow Group has a substantial competitive advantage in the real estate market. It is one of the most used real estate websites. The company also earns money through advertising and leads. Zillow Group has a low-capital business model. This means it doesn’t have high fixed costs, which makes it difficult to be profitable in a recession. Zillow Group also has low sensitivity to online competition. The company focuses on its website rather than trying to create a general platform that would compete with other websites.
Baidu is an interactive media and services company that provides Internet search, online advertising and artificial intelligence (AI) technologies in China. The company is one of the world’s largest Internet companies by revenue. Baidu has a substantial competitive advantage in the Chinese Internet market. It has over 80% market share in an internet search. Baidu’s AI technology is also very robust. The company is a leader in applying AI to various use cases. Baidu’s artificial intelligence technology is also used outside of China. For example, the company recently partnered with Tesla to use its artificial intelligence technology as the basis for Tesla’s Autopilot system. Baidu has a low-capital business model. This means it doesn’t have high fixed costs, which makes it difficult to be profitable in a recession.
Alphabet is an interactive media and services company that owns several brands, including Google, YouTube and Waymo. Alphabet generates revenue through the sale of advertising on its search engine and other online platforms. Its Google business has a substantial competitive advantage in online advertising. The company holds 88% of the global Internet search market. Alphabet has a low-capital business model. This means it doesn’t have high fixed costs, which makes it difficult to be profitable in a recession. Alphabet also has low sensitivity to online competition. As a result, it holds a large market share and has little reason to worry about new competitors.
The media and interactive services industry includes companies that provide communications and content on various media, including mobile phones, websites, and social media. These businesses generate revenue from advertising and subscriptions and develop a high return on equity. While these stocks have increased downside risk during economic downturns, they also offer above-average returns during bull markets. ZoomInfo, Zillow Group, Baidu and Alphabet are good stocks to invest in over the next five years.