Meta, Google Investors Look Past Earnings Beats to Risks Ahead
Oct 26, 2023 - bloomberg.com
The digital advertising market is showing signs of recovery from a prolonged slump, as evidenced by the positive results reported by Meta Platforms Inc., Snap Inc., and Alphabet Inc. All three companies reported growth in ad spending compared to the previous year, a positive development for investors who have witnessed the industry's struggles for over two years due to post-pandemic pullbacks in online marketing spending, economic uncertainties, and changes to Apple Inc.'s privacy policies that affected the effectiveness of smartphone ads.
Despite the positive results, the share prices of these companies do not reflect the recovery. The companies have had to navigate through various challenges, including a decrease in online marketing spending following the pandemic, a constantly changing economic landscape, and changes to Apple's privacy policies that have made smartphone ads less effective.
Key takeaways:
The digital ad market is recovering from a slump.
Despite the recovery, shares of Meta Platforms Inc., Snap Inc., and Alphabet Inc. do not reflect this positive change.
All three companies reported generally positive results this week, with ad spending growing compared to a year ago.
The companies have been dealing with challenges such as a post-pandemic pullback in online marketing spending, economic uncertainties, and changes to Apple Inc.’s privacy policies that made smartphone ads less effective.
