After years of resisting the idea of advertising, Netflix (NASDAQ: NFLX) has done an about-face on the strategy. Its ad-based tier, priced at $6.99/month in the U.S., launched in November and is now live in 12 countries. While it's too early to get any data on the performance of the ad-based tier, and the company has said it doesn't expect that offering to be material in the fourth quarter, Netflix co-CEO Reed Hastings made some comments at the New York Times DealBook conference that should stoke investor confidence in the ad business.
FAANG stocks dominated the stock market for a decade, but this year the elite group of stocks has fallen flat. Meta Platforms, Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Amazon, Netflix (NASDAQ: NFLX), and Apple have all fallen this year, and all but Apple have underperformed the Nasdaq.
Formerly richly valued growth companies -- especially those that haven't yet put much priority on reaching profitability -- have been absolutely clobbered. Every business has its issues, but those with solid foundations should be able to roll with the punches and emerge in better shape in the wake of the economic disruption they've endured this year. Three Fool.com contributors think MercadoLibre (NASDAQ: MELI), Embracer Group (OTC: THQQ.F), and RH (NYSE: RH) would be smart buys before 2022 comes to an end.