Analysts Slash Revenue Estimates For Tech Companies

Share post:

Research firm MoffettNathanson has lowered its 2025 estimates for top digital companies by double-digit percentages. These platforms include Alphabet, Meta, Snap and Twitter.

These platforms rely mainly on advertising to generate revenue, and in 2021 these companies experienced a massive patronage as business owners used advertising to reach their potential customers.

In 2021, ad spending in the U.S. increased by 38% compared to previous years. Alphabet, the world’s largest digital advertising platform, generated revenues of $257 billion in 2021.

However, a number of factors have led to a decline in advertising, including inflation, the ongoing war in Ukraine and the end of a COVID-induced lift into advertising.

According to Nathanson, an analyst at MoffettNathanson, the growth of the advertising market in 2021 was driven in part by an “unprecedented spike” in profitability among companies that saved money on office space and expansion, which meant they had to spend more on marketing and brand spending on ads to get customers to shop online.

But the trend is changing, as e-commerce’s share of retail sales has returned to pre-pandemic levels, and corporate spending is likely to rise when workers return to the office.

The sources for this piece include an article in Reuters.

Featured Tech Jobs

SUBSCRIBE NOW

Related articles

FTC says Microsoft’s layoffs at Activision Blizzard may threaten merger approval

The FTC has expressed dissatisfaction with Microsoft's layoffs at Activision Blizzard, challenging the integrity of the Microsoft-Activision deal....

Delaware court voids Musks $56 billion dollar compensation

Tesla's stock experienced a notable downturn following a Delaware court's decision to void CEO Elon Musk's massive $56...

Research Raises Concerns Over AI Impact on Code Quality

Recent findings from GitClear, a developer analytics firm, indicate that the increasing reliance on AI assistance in software...

IMF reports that 40 percent of global employment could be disrupted by AI

The International Monetary Fund (IMF) has issued a stark warning: nearly 40% of global employment could be disrupted...

Become a member

New, Relevant Tech Stories. Our article selection is done by industry professionals. Our writers summarize them to give you the key takeaways