Tech giants' advertising revenues threatened by "pandemic" bubble - Reuters
Research firm MoffettNathanson cut its 2025 revenue estimates for Google, Meta*, Snap and Twitter. Digital ad spending in the U.S. is up 38% in 2021 from a year earlier. However, the state of the economy this year could undermine the rapid growth.
"After years of excessive optimism, we are really concerned about long-term growth in digital advertising," Michael Nathanson, an analyst at MoffettNathanson, wrote in the report.
"The 'unprecedented' surge, backed by pandemic-era government funding, could turn out to be a serious cutback in advertising spending for many companies. Fed policy tightening and inflation risks will negatively impact businesses, the analyst added.