On Sunday, millions of people worldwide will tune in to watch the Kansas City Chiefs face off against the Philadelphia Eagles in the Super Bowl. Along with the game, comes the most anticipated commercials of the year.
These commercials have become almost as popular as the game itself. This year, companies will pay a record breaking $7 million for a 30 second advertisement! Does that mean these companies will be a good investment?
Unfortunately, a creative and/or memorable commercial doesn’t always lead to actual success for companies and investors. In reality, some businesses that have the most noteworthy ads turn out to be poor investments. Take a look at some companies from last year..
If you invested $10,000 in 2022 Super Bowl advertisers, this is how much you would have today:
- FTX $0
- Carvana $920
- Vroom $1,750
- Coinbase $3,620
- DraftKings $7,450
- Rocket Mortgage $7,840
- Salesforce $8,190
- GM $8,460
- Meta $8,700
Reviewing last year’s results, show that some of the memorable commercials didn’t make for good investments. Instead, when investing focus on an approach that incorporates hundreds of the world’s best companies, not just the latest trends.
George Maroudas
847-550-6100
george@pmgwealth.com
Twitter @ChicagoAdvisor
Disclaimers / Sources:
Stock data from YCharts.
Super Bowls Commercial Costs from Bloomberg.
Stock investing includes risks, including fluctuating prices and loss or principal. This information is not intended to provide specific advice or recommendations about any stock nor is it intended to be a recommendation to buy, sell or hold any stock investment. We suggest speaking with your financial professional about your situation prior to investing.
Please consult your financial advisor regarding your specific situation. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. All investing involves risk including loss of principal. No strategy ensures success or protects against loss. This information is not intended to be a substitute for specific individualized tax advice. The Standard & Poor’s Index is a capitalization weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.
