10 Advertising & Media Stocks That Could Tank If Recession Hits

7. Meta Platforms, Inc. (NASDAQ:META)

Meta Platforms, the firm that owns platforms like Facebook, WhatsApp, and Instagram, is a business that thrives on advertising revenue. A recession, which usually damages small and medium-sized businesses, will deal a big blow to the company’s finances.

On top of all that, META is facing more heat than usual on the regulatory front. The company was recently sued by a group of 67 top French media companies for illegal business practices, resulting in an unfair domination of the digital ads business.

This comes after META was fined 200 million Euros for breaching the DMA, Europe’s Digital Markets Act. META continues to protest, arguing the Commission’s policies force META to offer an inferior product to European users. However, the continent has decided to value privacy over profits, and that’s what the company has to deal with.

For now, META continues to report strong earnings despite adverse market conditions. The bigger question is, once the economy starts to show weakness, will the earnings stay strong?