Digital ad market is finally on the mend, bouncing back from the 'dark days' of 2022

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Mark Zuckerberg,Apple Inc,Reddit Inc

Earnings reports this week from Meta, Alphabet and Snap showed a solid recovery in the online ad market.

Meta, Alphabet and Snap all reported first-quarter results this week that beat analysts estimates, showing acceleration in advertising growth.

Meta, which was the first in the group to report results, put some fears to rest on Wednesday, showing a 27% jump in first-quarter"When Meta was in its dark days two years ago, the company knew what they had to do to get back on track," analysts at Bernstein wrote in a note after the earnings report. "To their credit, Meta defended the core.

"Without sounding overly religious, you either believe in Zuck or you don't, and we do," the analysts wrote.on Thursday, reporting ad revenue for the first quarter of $61.66 billion, up 13% from the year prior, with YouTube ad revenue jumping 21% to $8.09 billion. The company as a whole grew 15%, a rate last seen in 2022, and the stock shot up 10% on Friday, the sharpest rally since 2015.

"We emerge from Q1 results incrementally positive on shares of Alphabet," the analysts wrote, maintaining their buy recommendation.a 21% increase in revenue to $1.19 billion, the strongest growth in two years. In each of Snap's past six quarters, sales either grew in single digits or declined.

 

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