It’s that time again: The Super Bowl, an event that has become must-see television. Not so much for the game, but for capitalism and commercialization.
Investors can learn much from the exhibition.
Corporations advertising during the big game rank from the nation’s top industrial companies to upstart newbies looking to establish a brand. Big money is at stake.
I recall E*TRADE (NASDAQ: ETFC) ridiculing itself for wasting $2 million at the end of the dot.com boom in 2000. The joke was on anyone that bought E*Trade stock at the time.
Since those heady days, we don’t see the brashness of entrepreneurialism; instead, we get sappiness in defense of a large company gone stagnant.
This year’s poster boy for going stagnant: McDonald’s (NYSE: MCD). On Super Bowl Sunday, I’m sure we’ll see plenty of glory days ads from their campaign that has already proved effective at capturing attention. Still, I wouldn’t touch the stock with a 10-foot pole. The ads won’t help the company stem the tide of customers no longer visiting the burger chain.
Naturally, on Super Bowl Sunday, we’ll also see spots by Anheuser Busch, BMW, Doritos and GoDaddy, all trying to win our hearts.
Will they win our business, too? It’s hard to see how these ads pay off. They’re extremely expensive and minimal in real-dollar impact. All these ads manage to do is keep your name in the headlines—so to that extent, I say mission accomplished.
How about, from a stock perspective, avoiding Super Bowl advertisers entirely?
Here are 5 super stocks to consider instead: