An investor has identified three stocks as bargain buys, with potential for a bull run in the near future. The stocks are Meta Platforms (NASDAQ: META), Adobe (NASDAQ: ADBE), and The Trade Desk (NASDAQ: TTD).
Meta Platforms, formerly known as Facebook, changed its name a few years ago to signal a focus on the metaverse, though that business did not develop as hoped. Its social media business has remained strong, funding large metaverse investments. Management is now using nearly all cash flow to fund data centers for AI model training and improvement. Investors have started to see some payoffs, with Meta reporting more user time on the platform and increased ad conversions due to generative AI technology in ads.
Wall Street appears focused on management's AI spending, a concern that has contributed to pessimism. The stock is valued at 21 times forward earnings, cheaper than most big tech peers trading around 30 times forward earnings—a roughly 30% discount. It is also cheaper than the S&P 500, which trades at 22.4 times forward earnings.
Adobe faces market assumptions that its business model will be replaced by generative AI, as image generation improves and some models produce images indistinguishable from real ones. This could potentially impact graphics designers and Adobe's revenue. However, this thesis has not panned out. Adobe has integrated generative AI tools into its products to bolster designers' capabilities, and revenue growth has remained in the low double-digit range since the AI race began in 2023.
The market has not considered the possibility that Adobe remains fine, leading to a sell-off and a dirt-cheap valuation. If Adobe continues posting double-digit revenue growth, it is primed for a bull run.
The Trade Desk was among the worst-performing stocks in the S&P 500 during 2025. It operates a buy-side ad platform, helping businesses find opportune places to advertise online. Revenue growth has slowed from previous levels but saw an 18% gain in the third quarter. The stock trades at less than 18 times earnings, far cheaper than the S&P 500. If it delivers high double-digit growth throughout 2026 at a cheaper premium to the market, it could outperform most stocks and go on a bull run.
Before buying stock in Meta Platforms, note that The Motley Fool Stock Advisor analyst team identified what they believe are the 10 best stocks for investors to buy now, and Meta Platforms was not one of them. The 10 stocks that made the cut could produce monster returns in the coming years. For example, when Netflix made the list on December 17, 2004, a $1,000 investment at the time of recommendation would be worth $474,578. When Nvidia made the list on April 15, 2005, a $1,000 investment would be worth $1,141,628. Stock Advisor's total average return is 955%, compared to 196% for the S&P 500.
Keithen Drury has positions in Adobe, Meta Platforms, and The Trade Desk. The Motley Fool has positions in and recommends Adobe, Meta Platforms, and The Trade Desk. The Motley Fool recommends long January 2028 $330 calls on Adobe and short January 2028 $340 calls on Adobe.