Billionaire Battle Reveals Unexpected Tech Contender

By: Greg Maxwell
InvestingTwo businesspeople sit across from each other at the boardroom table, facing off.

"I'm up for a cage match if he is lol"

Not exactly words you'd expect from one of the richest men in the world… and yet, this challenge was issued by Elon Musk to fellow billionaire Mark Zuckerberg.

Meta's recent release of their own platform, Threads has certainly ruffled some feathers. And is a move in response to some controversial changes made by Musk at X (formerly known as Twitter), including charging users for verification and restricting the number of tweets viewable per day.

However, these fighting words may actually be a distraction from the real battle, — a brawl for control of a US$200+ billion social media advertising industry.

You see, while the tech billionaires battle on the public stage… their own kingdoms have been faltering.

Advertising revenue is the lifeblood for these behemoth social media companies and Meta's advertising revenue, slipped by 4% in Q4 of 2022. And X's U.S. advertising revenue nosedived 59% within just five weeks in April to May.

The reason can be put down to what experts call "walled gardens". In effect where each company controls all user data within their own platforms –  making themselves, in many cases, the only option for users. 

And it's an approach that advertisers complain limits transparency and restricts campaign integration between different platforms. 

Thereby hampering innovation, not to mention also raising privacy concerns which has seen many users leaving.

For investors in Meta and X these walled gardens and the distracting Billionaire Brawl may seem like a huge problem. 

However there's a secret for investors that may mean all that doesn't even matter — because, you don't need to even pick a side.

While Meta and X may be fighting for advertising revenue a third company is disrupting the limitations of these walled gardens. 

A company that's not only at the forefront of the open internet, it's also providing more precise, targeted advertising solutions. Setting a new paradigm despite the industry turbulence.

So, while Meta and X have seen advertising declines in the last year, this company saw YoY revenue growth of 21% in the first quarter of 2023. In fact, it already has its foot in the door of over 90 million households and is still growing. 

Which may be why it's getting attention from some deep-pocket investors, including Vanguard, Blackrock, JP Morgan, and T. Rowe Price.

And despite all this institutional interest, we believe it's still early days. 

To help Motley Fool Share Advisor members get ahead of this monumental shift, we've created a special report that delves into this NASDAQ listed "quiet winner" of the ad industry. We reveal:

  • The identity of this thriving company that's revolutionising the advertising world
  • The opportunity to add this stock to your portfolio while it's still under US$100
  • The secret to their 95% customer retention rate
  • And more

Click below to find out how you could leap ahead of this curve and gain immediate access to our insider report on the future of advertising.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe at anytime. Please refer to our Financial Services Guide (FSG) for more information.

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Motley Fool contributor Greg Maxwell has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Meta Platforms. The Motley Fool Australia has recommended Meta Platforms. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. Past performance is not an indicator of future results and all investing involves risk of loss. For more information about The Motley Fool see our Financial Services Guide. All returns cited are hypothetical and based on the percentage change between the stock price at the time of recommendation and the current or sell price (if the position has been closed) at the time of publication. Brokerage, taxes and any other associated costs are not taken into account. Performance figures are not intended to be a forecast and The Motley Fool does not guarantee the performance of, or returns on any investment. Any money back guarantee is strictly limited to the subscription price paid for the product.