On the heels of the Trump/Biden presidential debate, shares in Trump Media & Technology (NASDAQ:DJT) surged in after-hours trading. However, it promptly nosedived after the markets opened.
But does Trump’s debate win mean the stock is worth buying, or are there stocks to buy instead of Trump Media that capture both political will and emergent social media opportunities?
From a purely operational success standpoint, and not accounting for its meme stock status, Trump Media is cooked. Though the initial premise of Truth Social as a free speech platform once held promise, after X realigned its moderation policies there’s little benefit to yet another social media platform. Moreover, the most important demographics — younger users who are happy to use social media as a shopping platform — stick to more familiar names.
Trading at 1,200x sales today and facing dwindling download rates alongside reduced user engagement, these stocks to buy instead of Trump Media offer what the platform once promised with improved operational outlooks to boot.
Rumble (RUM)
Viewers flocked to Rumble (NASDAQ:RUM) this week to catch the Presidential Debate as the platform attracted a broad range of watchers just as interested in their favorite pundit’s opinion as the debate itself. This wide-ranging user base and improved content moderation perspectives, compared to alternatives like YouTube, are what set Rumble apart. They also make it a core component of the stocks to buy instead of Trump Media.
Rumble has a long way to go before it’s a major competitor to platforms like YouTube, but its current trajectory is promising. Despite first-quarter monthly active users (MAU) dipping below 2023 highs, the global MAUs remain reliably above 50 million.
In its latest quarterly report, Rumble posted a loss of 14 cents per share, outperforming analyst expectations, which had predicted a 22-cent loss per share. Alongside these financial results, Rumble made a bold strategic move by filing an antitrust lawsuit against Alphabet’s (NASDAQ:GOOG, GOOGL) Google. The lawsuit alleges that Google engages in online advertising practices that unfairly favor its own platform, YouTube, over competitors like Rumble. While the lawsuit’s outcome is uncertain, it still creates a “David and Goliath” underdog story that could propel Rumble to new heights.
BuzzFeed (BZFD)
Like Rumble, BuzzFeed (NASDAQ:BZFD) counts itself among the ranks of undervalued media stocks to buy instead of Trump Media, which could soon gain more attention due to increasing activist shareholder activity. Over the years, BuzzFeed has faced multiple scandals, including allegations of plagiarism, excessive advertiser influence and controversial political stances that have turned off many readers.
These issues, combined with declining sales and limited profitability, likely attracted the interest of former presidential candidate and activist investor Vivek Ramaswamy. Ramaswamy recently acquired a significant stake in BuzzFeed, indicating his intention to implement major changes within the company.
Ramaswamy is currently engaging with BuzzFeed’s board and recently met with CEO Jonah Peretti to discuss various operational and strategic opportunities to enhance shareholder value. This includes potential staff reductions and the company’s editorial and business strategies shift.
His investment reflects a broader strategy to address the lack of high-quality, independent media outlets while promoting greater transparency, objectivity and quality in media content.
Despite some pushback from BuzzFeed’s current management, Ramaswamy’s Strive Asset Management is establishing itself as a powerful player in activist investing and Buzzfeed itself has the potential to stand out from other stocks to buy instead of Trump Media.
Meta Platforms (META)
Meta Platforms (NASDAQ:META) is strategically repositioning itself in a way that, despite its comparative market saturation, still seems viable among stocks to buy instead of Trump Media. By observing X’s post-Musk growth, Meta may be aligning its values with evolving consumer preferences for freer speech and a broader diversity of opinions. Often perceived as a platform for older generations, Meta is maintaining its dominance among Gen Z users — which could prove profitable if the TikTok ban goes into effect.
Despite delays in Mark Zuckerberg’s ambitious metaverse vision, the shift toward virtual reality as a key element in future digital interactions seems inevitable. While interest in metaverse-related activities like virtual fashion shows and real estate has waned due to technological and accessibility hurdles, the sector’s moderate demand remains steady. This positions Meta’s metaverse initiative to eventually lead the evolving social media landscape, even if initial efforts were a bit premature.
Furthermore, Meta’s forward-thinking approach is supported by its strong foundation of over 10 million active advertisers, who pay premium rates for prominent visibility in user feeds. This combination of innovative outlook and robust advertising revenue solidifies Meta as a blue-chip leader among stocks to buy instead of Trump Media.
On the date of publication, Jeremy Flint held no positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.