Download now: The Downfall of Cable, and the Rise of 5G!

Super Bowl Stocks

Posted February 16, 2022

Should you invest in the companies advertising during the Super Bowl?

The answer might surprise you...

Because companies shell out the big bucks to get on the big screen, some investors, especially those in dividend-paying stocks, think it’s frivolous and lavish to throw that kind of money at a 30-second ad. This year, NBC charged $6.5 million per 30-second slot — an increase of $1 million from last year.

On the other hand, advertising gets a company’s product in front of millions of eyeballs (117 million Super Bowl viewers this year) and can create a buzz. A well-executed ad might even go viral.

That’s why advertisers put their best foot forward by showing the world how they want to be perceived. These ad campaigns have staying power and create decadeslong icons, like Budweiser’s Clydesdales and the E-Trade baby.

The mere ability to purchase an ad slot is also viewed as a good sign by investors that a company is confident about its future prospects.

And the stock may even get a little boost...

According to Kiplinger, companies that advertise during the Super Bowl outperform the S&P 500 by more than 1% on average the five days before and after the game. And they go on to outperform for the year.

For the advertisers banking on future sales, let’s see whether investing in these companies, as of this writing, would have turned a profit. This will also help us expose some major investing themes and how companies are attempting to shape our collective consciousness in order to sell more products and what that means for future market trends.

Video Streaming

Amazon touted its sports-streaming service through Prime Video, plus a new Prime-exclusive Lord of the Rings series. AMC+ showed off its plethora of available TV shows, including a final series of The Walking Dead. Disney+, HBO, and Netflix also hopped on board, making us wonder why there’s not just one service where you can access everything...

Five-day numbers:

  • Amazon (NASDAQ: AMZN) is down 2.84%.
  • AMC Networks (NASDAQ: AMCX), not to be confused with meme stock AMC (NYSE: AMC), is up 3.59%.
  • Disney (NYSE: DIS) is up 6.71%.
  • Netflix (NASDAQ: NFLX) is up 0.23%.

Food and Drink

Avocados From Mexico ran a commercial even though the U.S. government suspended all imports of Mexican avocados on the eve of the Super Bowl. The ban was in response to a U.S. plant safety inspector receiving threats on his work cellphone. Last week, the price of avocados hit an all-time high of $26.23 per 9-kilogram box.

Budweiser’s selling low-calorie drinks through its Cutwater and Bud Light brands. And we can’t forget about Pepsi, the official sponsor of the Super Bowl. We also saw a commercial from Hellman's, a well-known American brand owned by British company Unilever.

Five-day numbers:

  • Anheuser-Busch InBev (NYSE: BUD) is up 0.74%.
  • PepsiCo. (NASDAQ: PEP) is down 2.39%.
  • Unilever (NYSE: UL) is down 0.37%.

Electric Vehicles

GM is going all-electric. In a hilarious commercial with Dr. Evil and other cast members from Austin Powers, it said it’s offering 30 EV models by 2025. BMW also released a nice-looking all-electric SUV. But they don’t call them “break out my wallet” for nothing. As soon as something breaks on that car, which it will, it’ll cost a fortune. Polestar, owned by Volvo's Chinese parent company Zhejiang Geely, is apparently producing EVs now.

Finally, we can’t have EVs without charging stations, so Wallbox had an ad slot for its smart electric charging block and energy management system.

Five-day numbers:

  • GM (NYSE: GM) is down 2.4%.
  • Bayerische Motoren Werke (OTC: BMWYY) is up 0.53%.
  • Geely Automobile Holding (OTC: GELYY) is down 2.93%.
  • Wallbox (NYSE: WBX) is up 3.96%.

If you want more ideas on the EV revolution that's unfolding right before our eyes, here's our take on the best EV stock right now.

Travel

As the world attempts to open back up for travel amid continuing Draconian restrictions (a lot of celebrities are taking flak for not wearing masks at the big game), Expedia and Booking.com should benefit, as they’re some of the easiest ways to book all your travel needs. In fact, Booking.com owns Priceline, Kayak, and OpenTable, among other travel-related sites.

Five-day numbers:

  • Expedia (NASDAQ: EXPE) is up 4.84%.
  • Booking Holdings (NASDAQ: BKNG) is up 1.8%.

Sports Betting and Crypto

You can’t have a Super Bowl without sports betting, and DraftKings is banking on anything to drive its stock price up as it's down nearly 57% in half a year. On Sunday, the company paid out more than $175 million in bets, not to mention the crypto connection with sports betting. If you didn't know, DraftKings allows users to place bets in Bitcoin. Most notable among the Bitcoin betters this year is rapper Drake, who netted $300,000 from his crypto bets. Coinbase and FTX had strange adverts for their platforms as well.

Five-day numbers:

  • DraftKings (NASDAQ: DKNG) is up 1.52%.
  • Coinbase (NASDAQ: COIN) is down 1.73%.

By the way, the elites who weren't wearing masks at the game are using crypto as an inflation hedge, pure and simple, and we know the cryptos they're piling into next...

Personalized Health

The world continues to struggle with the COVID pandemic, so home testing has become a top priority — and not just testing for COVID but for other disease markers as well. Elizabeth Holmes was right about one thing: We need affordable, accurate tests that can be done at home. Too bad her machine didn't work. With the right tools, we can create personalized health plans, which will create a boon for health companies going forward. We saw ads for Hologic, which sells medical devices for diagnostics and medical imagery, and Cue Health, which sells portable home-testing kits. Honorable mentions include Planet Fitness and Uber Eats.

Five-day numbers:

  • Hologic (NASDAQ: HOLX) is down 5.99%.
  • Cue Health (NASDAQ: HLTH) is up 16.15%.
  • Planet Fitness (NYSE: PLNT) is up 0.29%.
  • Uber (NYSE: UBER) is down 7.2%.

The Future

Many ads looked to the future, with Facebook promoting the Meta Quest 2 by making reality look depressing. News flash: You still have to have a Facebook account to use the company’s VR headset. Salesforce took a different approach by poking fun at Jeff Bezos' and Elon Musk’s space race, as well as Zuckerberg’s metaverse, saying that we need to focus on our planet to make the future a better place. Unfortunately for Salesforce, the ad didn’t say anything about what the company actually does.

Five-day numbers:

  • Meta Platforms (NASDAQ: FB) is down 3.25%.
  • Salesforce (NYSE: CRM) is down 4.34%.

Profits or Not?

Had you invested in each company last week, you’d be up an average 0.32%... nothing to write home about. But the Super Bowl paints a broad picture of future trends, and I'm keeping an eye on the personalized health plans as there’s a lot of money that'll change hands there.

Have a good rest of the week and enjoy the federal holiday.

Stay free,

Alexander Boulden
Editor, Wealth Daily

After Alexander’s passion for economics and investing drew him to one of the largest financial publishers in the world, where he rubbed elbows with former Chicago Board Options Exchange floor traders, Wall Street hedge fund managers, and International Monetary Fund analysts, he decided to take up the pen and guide others through this new age of investing.

Buffett's Envy: 50% Annual Returns, Guaranteed