Stocks from the Dow Jones Industrial Average plummeting by 30% to 55% now could be potential bargains to invest in for the year 2023.
In the dynamic world of tech and entertainment, three heavyweights - Apple, Microsoft, and Disney - are poised for growth in the realms of augmented reality (AR), digital advertising, and advertising technology.
Apple's Focus on AR-Driven Product Development
Apple is investing heavily in AR technologies, aiming to expand its ecosystem through new devices or features that enhance user experience. This strategic move indirectly supports growth in digital advertising and advertising tech by increasing device engagement and services usage.
Microsoft's Growth in AR and Advertising Tech
Microsoft, known for its investments in cloud computing, AI, and mixed reality, is likely to seek growth in AR through enterprise and productivity solutions. The company is also making moves into the advertising technology market, though specifics for 2023 are not yet available.
Disney's Aggressive Expansion in Digital Advertising and Streaming
Disney is aggressively expanding its digital advertising and streaming market presence. In 2023 and beyond, the integration of Hulu into Disney+ and the launch of a new ESPN streaming app will create a unified streaming experience, broadening subscriber reach and advertising inventory. These moves will enhance Disney's ability to monetize advertising through advanced targeting across its expanded digital platforms.
Investor Sentiment
The Dow Jones Industrial Average finished 2022 down nearly 9%, marking only the sixth time over the past 50 years that the index delivered a worse negative return. Despite this, half of the analysts surveyed by Refinitiv in January recommend buying Disney, indicating a positive outlook for the company.
Investors have lost enthusiasm for Disney's streaming business as it continues to rack up big losses. On the other hand, the growth opportunities that Apple could have in new areas, including augmented reality and digital advertising, make the stock a promising buy.
Meanwhile, sales for Microsoft's cloud-based productivity software are growing, offering a positive sign for the tech giant. Microsoft's stock is currently 33% below the high set in late 2021, while Apple's shares are down around 30% below the peak level from late 2021.
Disney's Upcoming Blockbusters
Several likely blockbuster movies are on the way for Disney in 2023, including Guardians of the Galaxy Vol. 3 and a live-action version of The Little Mermaid. These releases could boost Disney's streaming services and advertising revenue.
In conclusion, Apple, Microsoft, and Disney are gearing up for significant growth in the coming years, with Apple focusing on AR-driven product development, Microsoft expanding its AR and advertising tech base, and Disney aggressively integrating its streaming platforms and launching new sports content apps to maximize ad revenue.
Investors are showing mixed sentiments towards Disney, with half of the analysts recommending buying the stock despite the company's ongoing losses in its streaming business. The potential growth opportunities in areas like augmented reality and digital advertising for Apple make it an appealing investment, even as its stock continues to dip below its high from late 2021. Meanwhile, Microsoft's stock remains 33% below its late 2021 peak, but its sales for cloud-based productivity software show promise. Disney's upcoming blockbuster movies, such as Guardians of the Galaxy Vol. 3 and the live-action The Little Mermaid, may bolster the company's streaming services and advertising revenue in 2023.
