Shares of online ad sellers jumped after Alphabet and Snap reported quarterly results that exceeded expectations. The strong performance of these companies lifted investor sentiment in the digital advertising sector. Alphabet, Google’s parent company, posted robust advertising revenue driven by solid demand for its services.
1/ Just finished my Q3 earnings remarks highlighting extraordinary momentum across the company and our differentiated full stack approach to AI innovation – robust infrastructure, research + models, and products + platforms. A few highlights: https://t.co/ZpF8zDwkcH 🧵
— Sundar Pichai (@sundarpichai) October 29, 2024
Snap also showed a recovery in its ad business, contributing to the overall optimism. “Alphabet’s results highlight the company’s resilience in the face of economic uncertainties,” said Sarah Chen, an analyst at Morningstar. The digital ad market is proving to be more durable than many had anticipated.
Here we go -> Alphabet reports Q3 revenue up 15% YoY to $88.27B, Search revenue up 12% to $49.39B, net income up 34% to $26.3B, and traffic acquisition costs up 9% to $13.72B https://t.co/lhoOTA9bog pic.twitter.com/l1rw7gjfyw
— Glenn Gabe (@glenngabe) October 29, 2024
However, not all tech firms shared the same success.
Follow our coverage of Google's Q3 earnings this afternoon here: https://t.co/acyrah0Zhl by @jenn_elias
— Sal Rodriguez 🕷 (@sal19) October 29, 2024
CDW, an IT solutions provider, missed its third-quarter revenue estimates due to reduced demand for hardware.
Google parent Alphabet reported third-quarter earnings that beat on top and bottom lines with strong revenue growth from the company’s cloud unit.
The company’s shares rose as much as 6% in after-hours trading…https://t.co/9oo5SM6ois
— Andy O'Donoghue (@ADODonoghue) October 29, 2024
Alphabet’s revenue demonstrates market resilience
The company’s shares fell 7.2% in premarket trading as clients cut spending amid inflationary pressures.
The positive earnings from major ad sellers like Google, Reddit, and Snap indicate a rebound in the digital advertising industry. Brands are redirecting their marketing budgets back to online platforms as the global economy stabilizes and consumer spending recovers. The strong performance of these tech giants showcases their ability to navigate changing market conditions and consumer behaviors,” noted Michael Lee, a senior analyst at JPMorgan.
Digital advertising remains a critical component of businesses’ marketing strategies.
Analysts predict that the upbeat results from key players will boost confidence in the digital ad sector, which had faced challenges due to economic uncertainties and privacy changes affecting ad tracking. As the earnings season progresses, investors will closely watch the performance of other tech companies to gauge the overall health of the digital advertising market. The resilience shown by Alphabet, Snap, and others suggests that the industry is well-positioned for growth in the coming quarters.
